REE 4204 EXAM QUESTIONS WITH COMPLETE SOLUTIONS
What is the market value? - Answer-the average price the market is willing to pay for that asset
What is financial leverage and why do you care about it? - Answer-positive (favorable) leverage increases your rate of return
What is a call option...
REE 4204 EXAM QUESTIONS WITH
COMPLETE SOLUTIONS
What is the market value? - Answer-the average price the market is willing to pay for
that asset
What is financial leverage and why do you care about it? - Answer-positive (favorable)
leverage increases your rate of return
What is a call option? - Answer-the ability to pay off the loan early
What is a put option? - Answer-allows the borrower to put the property in place of the
debt
what is the function of an intermediary? - Answer-its a 3rd party (mortgage lender) that
helps argue a contract
What is an efficient market? - Answer-things being placed efficiently
What kind of market is the real estate market? - Answer-weak form efficiency
Why was there little need for mortgage lending in the colonial US? - Answer-people
used to build their own cabins and they claimed land and homesteaded
Why was financing needed for post-civil war expansion? - Answer-they would sell their
farms to move out west and they needed financing to buy a new farm
What was real estate like in 1920's? - Answer-a lot of real estate was built and financed,
the economy boomed
Why was the 1930's the most memorable period in US history? - Answer-recession, half
of the homes in the US were in default by 1933, property values plummeted
How did the federal government respond to the events that took place in the 1930's? -
Answer-they created government jobs including FHLB,FSLIC, FHA, fannie mae
What kept the US busy in the 1940's? - Answer-WW2; gave people income and
everyone is buying houses and cars and going to school.
When was the modern subdivision created? - Answer-1940's, they were created to
house the GI's and their families
How many people hold a mortgage for the full term? - Answer-very few
US law is a mix of what countries? - Answer-roman, english, german
What is mortgage in french? - Answer-dead gage
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller shiifridoc. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.49. You're not tied to anything after your purchase.