Q&A Hero

Q: Real-cost inflation can be cooled by environmental controls and depletion of natural resources.

Q: Through the Federal Reserve Banks, the Federal Reserve Board can create money.

Q: Federal tax treatment of expenses and profits from real estate investments has little effect on what a person will pay for a property.

Q: A dramatic increase in the birth rate will have an immediate effect on the demand for housing but will have no long-range effect.

Q: Over a period of years, the supply of residential housing is one of temporary shortages and temporary excesses.

Q: Communities which are suffering from an economic depression caused by a decline in demand for the products of a single base industry tend to derive little benefit from diversification of their economic base.

Q: The extent to which regions and cities are vulnerable to changes in the economic base depends on the number and kinds of base industries that are present.

Q: The existence of a base industry is essential to the economic health of a community.

Q: The tourist industry in Florida or oil wells on Alaska's North Slope would be examples of base industries.

Q: A community's economic base is determined by its ability to produce goods and/or services for consumption within the local area.

Q: By 1985, the market for residential housing for first-time buyers was strongest for the sale of a. condominium units. b. large single-family houses of more than 1600 square feet. c. smaller single-family houses of approximately 1000 square feet. d. cooperative housing.

Q: Which of the following is more likely to be the LEAST demanding of appreciation potential in the ownership of real estate? a. The owner of a rental residence b. An owner who occupies a property as a principal c. A business which owns apartment buildings d. A corporation which owns office buildings

Q: By the year 1980, in order to curb inflation, the policy of the Federal Reserve became one of a. generous monetary growth. b. negative monetary growth. c. restrained monetary growth. d. constant, no-growth monetary supply.

Q: During the period from 1975 to 1980, the attractiveness of real estate as an investment was enhanced by all of the factors below EXCEPT a. tax deductions for interest on mortgage loans. b. rapidly appreciating property values. c. capital gains tax treatment of sales. d. declining interest rates for mortgage loans.

Q: The real cost of interest is the a. rate stated on the promissory note. b. inflation-adjusted cost. c. annual percentage rate. d. rate stated on the promissory note plus any discounts.

Q: Inflation brought on by increased effort necessary to produce the same quantity of a good or service is knownas a. demand-pull inflation. b. real-cost inflation. c. cost-push inflation. d. monetary inflation.

Q: When too much money chases too few goods, it is known as a. cost-push inflation. b. demand-pull inflation. c. real-cost inflation. d. deflation.

Q: Demand-pull inflation has little to do with a. manufacturing costs. b. the availability of money. c. buyers bidding against each other. d. too much money chasing too few goods.

Q: Cost-push inflation is the result of a. increased manufacturing costs. b. increased demand for a product. c. changes in the money supply. d. changes in interest rates.

Q: The advent of the secondary mortgage market a. made available previously untapped sources of money for real estate mortgage loans. b. contributed to real estate speculation and inflation in the late 1970s. c. both a and b. d. neither a nor b.

Q: The ECOA has contributed to greater numbers of homeowners among a. single persons. b. divorced persons. c. employed women. d. all of the above.

Q: All of the following have made home purchases by persons of modest income easier EXCEPT a. FHA loan insurance programs. b. creation of extra money by the federal reserve. c. VA loan guarantee programs. d. income tax deductions for mortgage loan interest and taxes.

Q: When a government prints more money than is necessary for economic growth, the result is a. a short-term drop in interest rates. b. a long-term drop in interest rates. c. both a and b. d. neither a nor b.

Q: In order to keep prices from falling in an economy that is growing at a 4 percent rate, which of the following is necessary? a. A 4% decrease in the money supply b. A constant, unchanging money supply c. A 2% increase in the money supply d. A 4% increase in the money supply

Q: Which has the greatest effect upon the interest rate an individual must pay for a real estate mortgage loan? a. Federal governmental borrowing b. State governmental borrowing c. Local governmental borrowing d. Competition form commercial and industrial borrowers

Q: From an investor's point of view, which is the most attractive allowable depreciation period for an investment property? a. 40 years b. 30 years c. 27.5 years d. 15 years

Q: Commercial property has a useful life under IRS guidelines of a. 15 years. b. 27 years. c. 39 years. d. 19 years.

Q: Federal tax laws have traditionally allowed owners of investment properties to deduct all of the following EXCEPT a. depreciation on land. b. maintenance costs. c. operating costs. d. ad valorem taxes.

Q: Under federal tax laws that allow homeowners to deduct mortgage loan interest, what would be the after-tax cost to a homeowner in the 28 percent tax bracket of a home mortgage loan made at a 12 percent rate of interest? a. 3.36 percent b. 8.64 percent c. 9.5 percent d. 8.0 percent

Q: Real estate values are affected by the federal government's a. tax rules. b. laws. c. deficits. d. all of the above.

Q: The post-World War II baby boom includes persons aged a. 30 to 40 in 1960. b. 35 to 40 in 1985. c. 50 to 60 in 1980. d. none of the above.

Q: Typically, most families acquire their largest and most expensive housing between ages a. 25 to 35. b. 45 to 55. c. 35 to 45. d. over age 60.

Q: Generally, a person's peak earning years occur at ages a. 25-35 years. b. 35-45 years. c. 45-55 years. d. 60 years.

Q: When the supply and demand relationship in a market is unbalanced because of excess supply, it is to the advantage of a. buyers. b. sellers. c. sellers of services only. d. buyers of services only.

Q: When there is a sudden increase in the demand for housing in a community, the price of existing housing will a. rise slowly over the next 12 months. b. rise rapidly, then fall slightly as supply catches up with demand. c. not reflect the increased demand for approximately 12 months. d. none of the above.

Q: Generally, for every job created by a base industry, there will be created in service industries approximately a. an equal number of jobs. b. two jobs. c. one job for every two persons employed in the base industry. d. four jobs.

Q: The Texagum manufacturing Company, which was the largest employer in the city of Westview, recently closed its plant in that city. This will probably result in a. declining real estate values. b. A slow-down in the construction of new homes. c. A decline in the population of Westview. d. All of the above.

Q: The real estate brokerage industry is an example of a a. base industry. b. secondary industry. c. export industry. d. primary industry.

Q: Which of the following terms would not apply to an industry that produces goods or services that are locally consumed ? a. Service industry b. Accessory industry c. Secondary industry d. Filler industry

Q: Industries which produce goods and services for export are referred to by all of the following terms EXCEPT a. base industries. b. export industries. c. primary industries. d. backbone industries.

Q: Recognizing the need to protect public health and safety against slipshod construction practices, governments have enacted ____________________ codes.

Q: When a municipality regulates a property to where it has no value or, in some cases, has no remaining economic value it is considered a ____________________.

Q: A strip of land that separates one land use from another is called a ____________________ zone.

Q: When land previously zoned for higher-density uses is rezoned for lower-density uses it is known as ____________________.

Q: ____________________ zoning refers to the rezoning of a small area of land in an existing neighborhood.

Q: ____________________ laws divide land into zones (districts) and within each zone regulate the purpose for which buildings may be constructed.

Q: A(n) ____________________ allows an individual landowner to vary from zoning requirements.

Q: An improvement that is inconsistent with current zoning regulations is considered a _________________________ use.

Q: A comprehensive guide for the physical growth of a community is known as a ____________________ plan.

Q: A government-issued document that states a structure meets local zoning and building code requirements and is ready for use is called a Certificate of ____________________.

Q: When an existing structure does not conform with a new zoning law, it is "grandfathered-in" as a nonconforming use.

Q: A Phase III assessment is always required to maintain a innocent landowner defense.

Q: To prepare a master plan a city or regional planning commission is usually created.

Q: When a municipality regulates a property to such an extent that it cannot be used for any purpose this is considered a taking.

Q: An environmental impact statement should reveal the effect of a planned development on property values.

Q: The effect of a proposed development on a community is determined by the preparation of an environmental impact statement.

Q: A subdivider wants to limit the height to which trees can grow so as to preserve views in the neighborhood. This would most likely be done with a zoning amendment.

Q: Building codes may be enacted by local governments or at the state level of government.

Q: Before a newly constructed building may be utilized by tenants, the owner must secure a certificate of inspection.

Q: Minimum standards for materials and construction of buildings are set by building codes.

Q: When a garden apartment development is situated between an office park and a subdivision of single-family residences it is known as a commercial zone.

Q: When a small area of land in an existing neighborhood is rezoned, this is known as down zoning.

Q: A zoning variance involves a change in the zoning law.

Q: A zoning variance allows an owner to deviate from the existing zoning law.

Q: Permission to use a building for a nonconforming use may be accomplished by obtaining a zoning ordinance.

Q: Permission to use a building for a nonconforming use may be accomplished by amendment of the zoning ordinance.

Q: A use of property that is not in agreement with present zoning laws may be permitted under a so-called "grandfather clause."

Q: A use of property that is not in agreement with present zoning laws is called a nonconforming use.

Q: Applied to land use, zoning laws may dictate construction standards for buildings.

Q: Zoning laws compensate an owner for loss of property value due to zoning.

Q: The basic authority for zoning laws is derived from a state's a. powers of eminent domain. b. right of taxation. c. both a and b. d. neither a nor b.

Q: Zoning laws may NOT be used to regulate which of the following? a. The purpose for which a building may be constructed b. The number of persons a building may accommodate c. The placement of interior partitions d. The height and bulk of a building

Q: Land-use controls may be imposed by a. state governments. b. local governments. c. subdivision developers. d. all of the above.

Q: Through zoning, a community can protect existing land users from all of the following EXCEPT a. encroachment by undesirable uses. b. uncontrolled development. c. incompatible uses of land. d. competitive business establishments.

Q: Environmental impact statements are prepared a. before development begins. b. during construction. c. upon completion of construction. d. by a homeowner.

Q: Good land use planning requires a long-range master plan. Which of the following is LEAST essential for any good master plan? a. Physical and economic surveys of the whole subdivision b. Long-range continuity provisions c. Provisions for the eventual transition to commercial development d. A balance between the economic and social needs of the community

Q: Once the original developer is no longer involved in a subdivision, the deed restrictions are enforced by a. the local police. b. the homeowner's association. c. majority vote. d. zoning.

Q: Without subdivision approval, a buyer of a lot will not be able to get a. a building permit. b. an environmental impact study. c. financing. d. a final approval.

Q: An urban homeowner wishing to add a second story onto his existing home would most likely have to a. get the approval of the first mortgagee. b. get the approval of the first and second mortgagee. c. seek a building permit. d. carry enough insurance to cover the new value.

Q: A parcel of land 330- x 1320- was subdivided into 8 lots. How many acres were contained in each lot?a. .125b. 1.25c. 5.45d. 8