When viewed as a tangible asset, real estate can be defined as the land and its permanent
improvements. Improvements on the land include:
a. fences
b. sewer systems
c. walkways
d. streets - answer✔✔fences
Real estate is property, which can be either a tangible or an intangible asset. Which of the
following would be considered an intangible asset?
a. Land
b. Building
c. Motor home
d. Mortgage - answer✔✔Mortgage
When the value of land is considered, it is important to distinguish between land and raw land.
Raw land refers to a(n):
a. structure on the land
b. building site
c. area that does not include any improvements
d. property's infrastructure - answer✔✔area that does not include any improvements
The demand for real estate derives from the need that participants in the user market have for
shelter and convenient access to other locations. The primary participants in the user market
include all of the following EXCEPT:
a. tenants
b. renters
d. pension fund managers - answer✔✔pension fund managers
A market where tenants negotiate rent and other terms with property owners or their managers is
referred to as a:
a. User Market
b. Capital Market
c. Housing Market
d. Property Market - answer✔✔User Market
The actions of local, state, and federal governments affect real estate values
a. Primarily through user markets
b. Primarily through capital markets
c. Primarily through their taxation policies
d. Through all the above - answer✔✔Through all the above
What portion of households owns their house?
a. 1/4
b. 2/3
c. 1/2
d. 1/3 - answer✔✔2/3
Of the following asset categories, which class has the greatest aggregate market value?
a. Government debt
b. Corporate equities
c. Nongovernment real estate
d. Mortgage debt - answer✔✔nongovernment real estate
Storm water drainage systems are best described as:
a. Improvements on the land
b. Tangible assets
c. Intangible assets
d. Improvements to the land - answer✔✔Improvements on the land
What is the single largest asset category in the portfolio of a typical U.S. household?
a. Housing
b. Consumer durables
c. Stocks
d. Bonds - answer✔✔Housing
Real estate markets differ from other asset classes by having all of the following characteristics
except:
a. Local market
b. Segmented market
c. homogeneous product
d. High transaction costs - answer✔✔homogenous product
Which of the following is the least important to the location of commercial properties?
a. Availability of communications infrastructure
b. Visibility
c. Access to schools
d. Access to customers - answer✔✔Access to schools
Which of the following is not a form of real property right?
a. Leasehold
b. Easement
c. License
d. Lien - answer✔✔License
Which of these easements is most likely to be an easement in gross?
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