CHAPTER 20 QUIZ 41 TO 45
41. Real assets in comparison to financial assets are more likely to produce
A. Superior returns
B. High liquidity
C. Psychic pleasure
D. Deflationary benefits
42. Which is not an approach to real estate valuation?
A. Cost approach
B. Comparative sales value
C. Price-earning ratio
D. Income approach
43. In a(n) ____ arrangement, the borrower may end up making payment to cover not only the loan
amortization, but also interest on deferred interest from an earlier period.
A. Graduated payment mortgage
B. Shared appreciation mortgage
C. Adjustable rate mortgage
D. More than one of the above
44. A real estate loan that brings in a new lender is the:
A. Adjustable rate mortgage
B. Graduate payment mortgage
C. Second mortgage
D. None of the above
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45. Which of the following is a disadvantage of a regular partnership investment arrangement?
A. It is the simplest legal arrangement
B. There is a well-defined center of responsibility
C. The liability of each investor is not limited to his or her investment
D. All of the above are advantages