REAL ESTATE FINANCE EXAM SCRIPT 2026
QUESTIONS WITH ANSWERS GRADED A+
◉ Federal Reserve (The Fed). Answer: is the central bank of the
United States
◉ Monetary inflation. Answer: When there is an excess of money
supply in the market.
◉ Demand-pull inflation. Answer: When there is more money in the
market and less goods for sale.
◉ Cost-push inflation. Answer: Occurs when the cost of production
and offering services increase, thereby causing manufacturers and
tradespeople/vendors to rais their prices accordingly.
◉ Discount rate. Answer: The interest rate charged member banks
that borrow from the Federal Reserve Systems
◉ Federal Funds Rate. Answer: Is the rate that the Federal reserve
charges banks for unsecured loans, most of which are for a very
short term.
,◉ Trouble Asset Relief Program (TARP). Answer: Was created to
restore the nations financial stability and restart economic growth.
◉ United State Mint. Answer: Created by Congress in 1972 and
became part of the Department of the Treasury in 1873. The
primary mission is to serve the American people by manufacturing,
distributing, and circulating precious metal coins, collecting coins
and national medals. Also entrusted with providing security over
assets.
◉ The Federal Deposit Insurance Corporation (FDIC). Answer: An
agency created in 1933 to insure individuals' bank accounts,
protecting people against losses due to bank failures (Insures
deposits only)
◉ The Federal Home Loan Bank (FHLB) System. Answer: A system
of regional banks from which local lending institutions everywhere
in America borrow funds to finance housing, economic development,
infrastructure and jobs.
◉ The Federal Housing Administration (FHA). Answer: Provides
mortgage insurance on loans made by blank- approved lenders
throughout the US and its territories. Insures mortgages on single-
family and multifamily homes including manufactured homes and
hospitals. It is the largest insurer of mortgages in the world, insuring
over 34 million properties since its inception in 1934.
, ◉ FHA mortgage insurance. Answer: Provides lenders with
protection against losses as the result of homeowners defaulting on
their mortgage loans.
◉ Community Development Block Grants (CDBG). Answer: To help
communities with economic development, job opportunities and
housing rehabilitation
◉ HOME Investment Partnership Program. Answer: Block grants to
develop and support affordable housing for low-income residents.
◉ Rental assistance. Answer: In the form of section 8 certificates or
vouchers for low-income households.
◉ Ginnie Mae (GNMA). Answer: Was established in the U.S in 1968
to promote homeownership. It is wholly-owned government
association that operates a mortgage-backed securities program
designed to facilitate the flow of capital into housing industry. Does
not issue, sell or buy pass-through mortgage-backed securities or
purchases mortgages loans. It simply guarantees (insures).
◉ Federal Fair Housing Act of 1968. Answer: An act prohibiting
discrimination in the sale or rental of housing on the basis of race,
color, religion or national origin sex, handicap and familial status.
QUESTIONS WITH ANSWERS GRADED A+
◉ Federal Reserve (The Fed). Answer: is the central bank of the
United States
◉ Monetary inflation. Answer: When there is an excess of money
supply in the market.
◉ Demand-pull inflation. Answer: When there is more money in the
market and less goods for sale.
◉ Cost-push inflation. Answer: Occurs when the cost of production
and offering services increase, thereby causing manufacturers and
tradespeople/vendors to rais their prices accordingly.
◉ Discount rate. Answer: The interest rate charged member banks
that borrow from the Federal Reserve Systems
◉ Federal Funds Rate. Answer: Is the rate that the Federal reserve
charges banks for unsecured loans, most of which are for a very
short term.
,◉ Trouble Asset Relief Program (TARP). Answer: Was created to
restore the nations financial stability and restart economic growth.
◉ United State Mint. Answer: Created by Congress in 1972 and
became part of the Department of the Treasury in 1873. The
primary mission is to serve the American people by manufacturing,
distributing, and circulating precious metal coins, collecting coins
and national medals. Also entrusted with providing security over
assets.
◉ The Federal Deposit Insurance Corporation (FDIC). Answer: An
agency created in 1933 to insure individuals' bank accounts,
protecting people against losses due to bank failures (Insures
deposits only)
◉ The Federal Home Loan Bank (FHLB) System. Answer: A system
of regional banks from which local lending institutions everywhere
in America borrow funds to finance housing, economic development,
infrastructure and jobs.
◉ The Federal Housing Administration (FHA). Answer: Provides
mortgage insurance on loans made by blank- approved lenders
throughout the US and its territories. Insures mortgages on single-
family and multifamily homes including manufactured homes and
hospitals. It is the largest insurer of mortgages in the world, insuring
over 34 million properties since its inception in 1934.
, ◉ FHA mortgage insurance. Answer: Provides lenders with
protection against losses as the result of homeowners defaulting on
their mortgage loans.
◉ Community Development Block Grants (CDBG). Answer: To help
communities with economic development, job opportunities and
housing rehabilitation
◉ HOME Investment Partnership Program. Answer: Block grants to
develop and support affordable housing for low-income residents.
◉ Rental assistance. Answer: In the form of section 8 certificates or
vouchers for low-income households.
◉ Ginnie Mae (GNMA). Answer: Was established in the U.S in 1968
to promote homeownership. It is wholly-owned government
association that operates a mortgage-backed securities program
designed to facilitate the flow of capital into housing industry. Does
not issue, sell or buy pass-through mortgage-backed securities or
purchases mortgages loans. It simply guarantees (insures).
◉ Federal Fair Housing Act of 1968. Answer: An act prohibiting
discrimination in the sale or rental of housing on the basis of race,
color, religion or national origin sex, handicap and familial status.
