Download REAL ESTATE ECONOMICS - Chapter Quizzes

Real Estate Economics – 5th Edition - by Huber, Messick, and Pivar
Chapter 3 Quiz
Copyright January 2011, Educational Textbook Company
1. A demand deposit that must be paid by the depositor’s bank to the payee upon
presentation is known as:
a. cash.
b. check.
c. money order.
d. all of the above.
2. California is in which district of the Federal Reserve System?
a. 16th
b. 13th
c. 12th
d. 11th
3. The rate of interest at which member banks borrow money from the Federal Reserve
bank is called:
a. prime rate.
b. APR.
c. adjusted rate.
d. discount rate.
4. A “contractionary monetary policy” of the Federal Reserve can decrease the money
supply by all of the following, except:
a. increasing prime rates.
b. increasing the discount rates.
c. increasing reserve requirements.
d. selling government bonds.
5. Spending more money as a government than is collected in income taxes is known
as:
a. bouncing a check.
b. creating a deficit.
c. borrowing money.
d. all of the above.
6. A positive balance of trade:
a. occurs when we export more than we import.
b. tends to increase the value of the dollar.
c. brings more foreign dollars into our economy.
d. all of the above.
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7. Freddie Mac is known by which acronym?
a. FRDMC
b. FNMA
c. FHLMC
d. FMAC
8. The marketplace that allows lenders to sell their loans to obtain cash to make new
loans is known as the:
a. primary mortgage market.
b. secondary mortgage market.
c. tertiary mortgage market.
d. federal marketplace.
9. The effective interest rate that includes all loan charges is called:
a. annual percentage rate.
b. compensating balance.
c. actual percentage rate.
d. annual prime rate.
10. Which type of clause states that the entire loan balance becomes due and payable
when the property is sold, assigned, or transferred?
a. Balance clause
b. Due on demand clause
c. Transfer clause
d. Due on sale clause
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Real Estate Economics – 5th Edition - by Huber, Messick, and Pivar
Chapter 3 Quiz Answers
Copyright January 2011, Educational Textbook Company
1. b (p95)
2. c (p98)
3. d (p100)
4. a (p103)
5. b (p105)
6. d (p106)
7. c (p110)
8. b (p111)
9. a (p113)
10. d (p118)
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