Question 1

The first gold bullion coin ever produced by the U.S. government was issued in what year?

Accepted Answer

A)   1963
B)   1968
C)   1975
D)   1980
E)   1986

Question 2

Financial leverage refers to:

Accepted Answer

A)   the use of borrowed funds for investment purposes.
B)   the mathematical law of large numbers.
C)   financial averages.
D)   buying and selling short.
E)   limiting financial liability.

Question 3

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

Accepted Answer

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

Question 4

Passive loss is the total amount of losses from a passive activity minus the total income from the passive activity.

Accepted Answer

A) True 
 B)False

Question 5

In 2011, which country was the world's largest producer of gold?

Accepted Answer

A)   China
B)   Australia
C)   U.S.
D)   Russia
E)   Canada

Question 6

With an indirect real estate investment, the investors appoint a trustee to hold legal title on behalf of all the investors in the group.

Accepted Answer

A) True 
 B)False

Question 7

Limited partnerships and syndicates are examples of direct real estate investment.

Accepted Answer

A) True 
 B)False

Question 8

Ginnie Maes are backed by the full faith and credit of the Federal Government.

Accepted Answer

A) True 
 B)False

Question 9

REITs, Ginnie Maes, and Freddie Macs are examples of ____________ real estate investments.

Accepted Answer

A)   direct
B)   indirect
C)   safe
D)   risky
E)   speculative

Question 10

It may take months to sell commercial property or limited partnership shares.

Accepted Answer

A) True 
 B)False

Question 11

The first gold bullion coin ever produced by the U.S. government was issued in 2001.

Accepted Answer

A) True 
 B)False

Question 12

Since first and second mortgages are risky investments, these can potentially provide relatively high rates of return.

Accepted Answer

A) True 
 B)False

Question 13

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

Accepted Answer

A) True 
 B)False

Question 14

An advantage of purchasing diamonds for investment purposes is that:

Accepted Answer

A)   diamonds are not easily turned into cash.
B)   diamonds are relatively limited in supply.
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.

Question 15

Explain the difference between direct and indirect investments in real estate. Give examples of each.

Accepted Answer

Real estate investments are classified a...

Question 16

An example of an indirect real estate investment is a(n) :

Accepted Answer

A)   single family dwelling.
B)   duplex.
C)   apartment.
D)   land.
E)   participation certificate.

Question 17

Prices of collectibles aren't necessarily cheaper on the web, but it's much easier to compare them.

Accepted Answer

A) True 
 B)False

Question 18

A vacation home is deemed a second home so long as you rent it no more than ________ per year.

Accepted Answer

A)   one month
B)   14 days
C)   7 days
D)   8 weeks
E)   4 weeks

Question 19

Hal Lindon has an equity investment in a pool of mortgages that have been purchased by one of several government agencies. What type of investment is this?

Accepted Answer

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

Question 20

What role can a REIT play in diversifying an individual's investment portfolio?

Accepted Answer

A REIT is an investment in real estate a...

Exam 17: Investing in Real Estate and Other Investment Alternatives

With an indirect real estate investment, the investors appoint a trustee to hold legal title on behalf of all the investors in the group.

Correct AnswerverifiedShow Answer

Explain the difference between direct and indirect investments in real estate. Give examples of each.

Correct AnswerverifiedReal estate investments are classified a...View AnswerShow Answer

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

Correct AnswerverifiedShow Answer

REITs, Ginnie Maes, and Freddie Macs are examples of ____________ real estate investments.

Correct AnswerverifiedShow Answer

An example of an indirect real estate investment is a(n) :

Correct AnswerverifiedShow Answer

It may take months to sell commercial property or limited partnership shares.

Correct AnswerverifiedShow Answer

Limited partnerships and syndicates are examples of direct real estate investment.

Correct AnswerverifiedShow Answer

Passive loss is the total amount of losses from a passive activity minus the total income from the passive activity.

Correct AnswerverifiedShow Answer

Ginnie Maes are backed by the full faith and credit of the Federal Government.

Correct AnswerverifiedShow Answer

Financial leverage refers to:

Correct AnswerverifiedShow Answer

Hal Lindon has an equity investment in a pool of mortgages that have been purchased by one of several government agencies. What type of investment is this?

Correct AnswerverifiedShow Answer

A vacation home is deemed a second home so long as you rent it no more than ________ per year.

Correct AnswerverifiedShow Answer

An advantage of purchasing diamonds for investment purposes is that:

Correct AnswerverifiedShow Answer

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

Correct AnswerverifiedShow Answer

What role can a REIT play in diversifying an individual's investment portfolio?

Correct AnswerverifiedA REIT is an investment in real estate a...View AnswerShow Answer

Prices of collectibles aren't necessarily cheaper on the web, but it's much easier to compare them.

Correct AnswerverifiedShow Answer

The first gold bullion coin ever produced by the U.S. government was issued in 2001.

Correct AnswerverifiedShow Answer

In 2011, which country was the world's largest producer of gold?

Correct AnswerverifiedShow Answer

Since first and second mortgages are risky investments, these can potentially provide relatively high rates of return.

Correct AnswerverifiedShow Answer

The first gold bullion coin ever produced by the U.S. government was issued in what year?

Correct AnswerverifiedShow Answer

Correct Answer
verified

Correct Answer
verified
Real estate investments are classified a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified
A REIT is an investment in real estate a...
View Answer

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified

Correct Answer
verified