Question 1

In what type of real estate investment do you assume the role of a mortgage or student loan lender receiving interest and principal by check each month?

Accepted Answer

A)  Real estate investment trusts
B)  Real estate limited partnerships
C)  Participation certificates
D)  Real estate syndicates
E)  Post office buildingsF) A) and B)
G) B) and C)

Question 2

High interest rates depress gold prices,because they make it very expensive to carry gold as an investment.

Accepted Answer

A) True 
 B)False

Question 3

Collectibles include rare coins,works of art,antiques,stamps,rare books,paintings,and other items that appeal to collectors and investors.

Accepted Answer

A) True 
 B)False

Question 4

The median price of existing homes:

Accepted Answer

A)  has increased over the past 30 years,thereby acting as a hedge against inflation.
B)  has risen less than the Consumer Price Index.
C)  always increases in value.
D)  tends to be countercyclical,thereby acting as a hedge against the business cycle.
E)  remains constant over time.F) C) and E)
G) A) and B)

Question 5

In a direct real estate investment,the investor holds legal title to the property.

Accepted Answer

A) True 
 B)False

Question 6

Which of the following is an investment where a trustee holds legal title to the investment?

Accepted Answer

A)  Commercial property
B)  Undeveloped land
C)  Single-family dwelling
D)  Duplexes
E)  SyndicatesF) B) and D)
G) B) and C)

Question 7

You can gain entry to a shopping center investment by investing $5,000 in a limited partnership.

Accepted Answer

A) True 
 B)False

Question 8

A REIT may engage in speculative,short-term holding of real estate for the purpose of selling it for quick profits.

Accepted Answer

A) True 
 B)False

Question 9

If you want a risk-proof real estate investment,participation certificates are for you.

Accepted Answer

A) True 
 B)False

Question 10

Explain the relationship between real estate syndicates and REITs.

Accepted Answer

A syndicate is a temporary association o...

Question 11

Limited partnerships and syndicates are examples of direct real estate investment.

Accepted Answer

A) True 
 B)False

Question 12

Today,real estate investors must use accelerated depreciation methods to recover the costs.

Accepted Answer

A) True 
 B)False

Question 13

If a gold bullion bar does not remain in the possession of the dealer or bank that sells it,what must happen before it can be resold?

Accepted Answer

A)  It must be made into coins.
B)  It must be pounded flat.
C)  It must be reassayed.
D)  It must be turned into jewelry.
E)  It must be taxed.F) D) and E)
G) A) and E)

Question 14

Which of the following can be a management problem when investing directly in real estate?

Accepted Answer

A)  Finding reliable tenants
B)  Inability to sell your interest in a limited partnership
C)  Disagreements among syndicate members
D)  Limited financial liability
E)  Financial planners do not support buying small propertiesF) B) and D)
G) A) and D)

Question 15

A REIT is similar to a mutual fund or an investment company,and it trades on stock exchanges or over-the-counter.

Accepted Answer

A) True 
 B)False

Question 16

During which of the following economic periods is the price of a precious metal,such as rhodium,silver or platinum,likely to increase?

Accepted Answer

A)  Recession
B)  Depression
C)  Peace time
D)  Deflationary
E)  InflationaryF) B) and D)
G) A) and E)

Question 17

Unlike stocks and bonds,precious metals sitting in vaults earn no income.

Accepted Answer

A) True 
 B)False

Question 18

It is much easier today to find and trade in collectibles than it was in prior years.Which one of the following is primarily the reason for this?

Accepted Answer

A)  Telephone
B)  Web (internet) 
C)  Magazines
D)  Plane travel
E)  AutomobilesF) C) and E)
G) C) and D)

Question 19

Real estate investments provide ________ protection against inflation.

Accepted Answer

A)  consistent
B)  unusual
C)  exceptional
D)  some
E)  noF) B) and E)
G) C) and D)

Question 20

On small gold bars,gold dealers and banks add a five to eight percent premium over the pure gold bullion value.

Accepted Answer

A) True 
 B)False

Exam 17: Investing in Real Estate and Other Investment Alternatives

Today,real estate investors must use accelerated depreciation methods to recover the costs.

Correct AnswerverifiedShow Answer

You can gain entry to a shopping center investment by investing $5,000 in a limited partnership.

Correct AnswerverifiedShow Answer

It is much easier today to find and trade in collectibles than it was in prior years.Which one of the following is primarily the reason for this?

Correct AnswerverifiedShow Answer

In a direct real estate investment,the investor holds legal title to the property.

Correct AnswerverifiedShow Answer

A REIT is similar to a mutual fund or an investment company,and it trades on stock exchanges or over-the-counter.

Correct AnswerverifiedShow Answer

Unlike stocks and bonds,precious metals sitting in vaults earn no income.

Correct AnswerverifiedShow Answer

During which of the following economic periods is the price of a precious metal,such as rhodium,silver or platinum,likely to increase?

Correct AnswerverifiedShow Answer

Collectibles include rare coins,works of art,antiques,stamps,rare books,paintings,and other items that appeal to collectors and investors.

Correct AnswerverifiedShow Answer

The median price of existing homes:

Correct AnswerverifiedShow Answer

Real estate investments provide ________ protection against inflation.

Correct AnswerverifiedShow Answer

Limited partnerships and syndicates are examples of direct real estate investment.

Correct AnswerverifiedShow Answer

High interest rates depress gold prices,because they make it very expensive to carry gold as an investment.

Correct AnswerverifiedShow Answer

A REIT may engage in speculative,short-term holding of real estate for the purpose of selling it for quick profits.

Correct AnswerverifiedShow Answer

On small gold bars,gold dealers and banks add a five to eight percent premium over the pure gold bullion value.

Correct AnswerverifiedShow Answer

Explain the relationship between real estate syndicates and REITs.

Correct AnswerverifiedA syndicate is a temporary association o...View AnswerShow Answer

If you want a risk-proof real estate investment,participation certificates are for you.

Correct AnswerverifiedShow Answer

In what type of real estate investment do you assume the role of a mortgage or student loan lender receiving interest and principal by check each month?

Correct AnswerverifiedShow Answer

Which of the following can be a management problem when investing directly in real estate?

Correct AnswerverifiedShow Answer

If a gold bullion bar does not remain in the possession of the dealer or bank that sells it,what must happen before it can be resold?

Correct AnswerverifiedShow Answer

Which of the following is an investment where a trustee holds legal title to the investment?

Correct AnswerverifiedShow Answer

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A syndicate is a temporary association o...
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