Filters
Question type
Study Flashcards

Harrison Ford has invested in something that acts like a mutual fund and that derives income from interest on loans to real estate owners.He knows there are federal laws that require this type of investment to refrain from engaging in speculative,short-term holding of real estate to sell for quick profits.What type of investment has Harrison made?


A) Limited partnership
B) Equity REIT
C) Mortgage REIT
D) Hybrid REIT
E) Participation certificate

F) A) and E)
G) A) and C)

Correct Answer

verifed

verified

A participation certificate is an equity investment in a pool of mortgages or student loans that have been purchased by one of several government agencies.

A) True
B) False

Correct Answer

verifed

verified

A REIT is a firm that pools investor funds and invests them in real estate or uses them to make construction or mortgage loans.

A) True
B) False

Correct Answer

verifed

verified

Which of the following is a true statement?


A) Rental property expenses do not include mortgage interest.
B) Many investors acquire large rental properties initially and then trade down to smaller units.
C) Rental property expenses are not limited for tax purposes.
D) Rental property expenses are treated as a passive loss once they exceed rental income.
E) A passive activity is a business you materially participate in.

F) B) and C)
G) B) and D)

Correct Answer

verifed

verified

An advantage of purchasing diamonds for investors is that:


A) diamonds are not easily turned into cash.
B) diamonds are small and easy to conceal.
C) diamonds are largely controlled by DeBeers Consolidated Mines of South Africa.
D) the grading of diamonds is not an exact science.
E) diamonds are typically bought at retail and sold at wholesale.

F) A) and E)
G) All of the above

Correct Answer

verifed

verified

What advantages do real estate investments offer?

Correct Answer

verifed

verified

Real estate investments may ha...

View Answer

During deflationary or recessionary periods,the values of real estate investments generally increase.

A) True
B) False

Correct Answer

verifed

verified

Which of the following is an investment where a trustee holds legal title to the investment?


A) Commercial property
B) Undeveloped land
C) Office buildings
D) Duplexes
E) Syndicates

F) A) and E)
G) D) and E)

Correct Answer

verifed

verified

Over the past 30 years,the median price of existing homes has increased an average of more than _____ percent every year.


A) 5
B) 6
C) 7
D) 10
E) 11

F) C) and E)
G) A) and C)

Correct Answer

verifed

verified

Today,real estate investors must use accelerated depreciation methods to recover the costs.

A) True
B) False

Correct Answer

verifed

verified

The basic unit of gold bullion is one _____ of 0.995 fine gold.


A) kilogram.
B) troy ounce.
C) pound.
D) ton.
E) wafer.

F) B) and E)
G) B) and C)

Correct Answer

verifed

verified

On larger gold bars,dealers and banks add a ____________ percent premium over the pure gold bullion value.


A) 1 to 2
B) 3 to 5
C) 5 to 8
D) 6 to 7
E) 9 to 12

F) A) and B)
G) A) and C)

Correct Answer

verifed

verified

A passive activity is a business or trade in which you do not materially participate.

A) True
B) False

Correct Answer

verifed

verified

Which one of the following is not required of a REIT by federal law?


A) Distribute at least 90 percent of the taxable annual earnings to shareholders
B) Hire independent real estate professionals to perform certain management activities
C) Have at least 100 shareholders with no more than half of all shares owned by 5 or fewer people
D) Make direct investments only in apartment houses, shopping malls, and other commercial property
E) Invest at least 75 percent of the total assets in real estate

F) C) and D)
G) C) and E)

Correct Answer

verifed

verified

Easing of international tensions or disinflation causes a decline in gold prices.

A) True
B) False

Correct Answer

verifed

verified

The tax laws prevent real estate investors from taking losses in excess of the actual amounts they invest.

A) True
B) False

Correct Answer

verifed

verified

Most REITs specialize in one property type only.

A) True
B) False

Correct Answer

verifed

verified

General partners in a real estate limited partnership bear unlimited liability.

A) True
B) False

Correct Answer

verifed

verified

The basic unit of gold bullion is one troy ounce.

A) True
B) False

Correct Answer

verifed

verified

Real Estate Investment Trusts must distribute at least 90 percent of their taxable annual earnings to shareholders.

A) True
B) False

Correct Answer

verifed

verified

Showing 121 - 140 of 151

Related Exams

Exam 1

Personal Finance Basics and the Time Value of Money

116 Questions

Exam 2

Financial Aspects of Career Planning

108 Questions

Exam 3

Money Management Strategy: Financial Statements and Budgeting

110 Questions

Exam 4

Planning Your Tax Strategy

111 Questions

Exam 5

Financial Services: Savings Plans and Payment Accounts

99 Questions

Exam 6

Introduction to Consumer Credit

185 Questions

Exam 7

Choosing a Source of Credit: The Costs of Credit Alternatives

141 Questions

Exam 8

Consumer Purchasing Strategies and Legal Protection

106 Questions

Exam 9

The Housing Decision: Factors and Finances

106 Questions

Exam 10

Property and Motor Vehicle Insurance

120 Questions

Exam 11

Health, Disability, and Long-Term Care Insurance

163 Questions

Exam 12

Life Insurance

173 Questions

Exam 13

Investing Fundamentals

131 Questions

Exam 14

Investing in Stock

145 Questions

Exam 15

Investing in Bonds

141 Questions

Exam 16

Investing in Mutual Funds

145 Questions

Exam 18

Starting Early: Retirement Planning

179 Questions

Exam 19

Estate Planning

155 Questions

Show Answer