RECA FUNDAMENTALS EXAM
QUESTIONS & UPDATED ANSWERS
RATED 100% CORRECT
Which of the following is NOT a RECA educational resource for industry professionals?
- Correct Answer ✔✔ Spatial Information System (Spin 2)
Which entity has the authority to amend the Real Estate Act - Correct Answer ✔✔
Provincial Legislature
Which of the following measures the change in a cost of a fixed basket of goods and
services purchased by families over a period of time - Correct Answer ✔✔ Consumer
Price Index (CPI)
Which of the following will occur to the supply of a good when there is a change in
quantity supplied due to a price increase? - Correct Answer ✔✔ an increase in quantity
supplied
Microeconics - Correct Answer ✔✔ studies the basic theories of supply and demand as
it relates to individuals, households and firms
Resource Markets - Correct Answer ✔✔ facilitate the exchange of factors of production
What causes the quantity demanded to shift? - Correct Answer ✔✔ change in tastes,
expectations, and number of consumers
benefits of economic growth - Correct Answer ✔✔ depletion of natural resources
Real Property Report - Correct Answer ✔✔ document produced by Alberta Land
Surveyor
Which of the following is not a non-price determinant of demand - Correct Answer ✔✔
cost of production
What type of economy does Canada have? - Correct Answer ✔✔ mixed economy
Benefits of RECAS trust assurance and practice review program - Correct Answer ✔✔ -
effective record keeping and administrative procedures
- education and advice in relation to brokerage trust accounting
- identifies and resolves potential problems regarding brokerage trust accounting
requirements
, Responsibilities of RECA - Correct Answer ✔✔ - Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
Four factors of production - Correct Answer ✔✔ land, labor, capital, entrepreneurship
RECA provides the following annual reports - Correct Answer ✔✔ - financial reports
- industry statistics
- reports for the previous year
The structure of real estate in Alberta includes; - Correct Answer ✔✔ - local real estate
boards
- alberta real estate association
- canadian real estate association
Referral definition - Correct Answer ✔✔ The act of recommending or directing a person
for service to another person or business
- brokerage is responsible for paying and receiving remuneration in connection to trade
RECAS professional conduct review Objects - Correct Answer ✔✔ - gather all relevant
information
- treat parties fairly
-gather information efficiently
Amendments to the Act - Correct Answer ✔✔ - can be made by provincial legislature
with recommendations by the Minister of Service Alberta
Amendments to the rules - Correct Answer ✔✔ The rules contain the day to day
activities
- council has the authority to create and amend
Executive Director can suspend license - Correct Answer ✔✔ - determines the length of
suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
Whats includes in written service agreements? - Correct Answer ✔✔ - the services to
be provided by the brokerage
- the responsibilities of each party to the agreement
- the names of the parties to the agreement
failure to immediately notify Executive Director of changes to information provided in
support of license results in: - Correct Answer ✔✔ - Exec. Director may refer the matter
for a professional conduct review
- Exec. Director may suspend industry professionals license
- Exec. director may cancel the industry professionals license
QUESTIONS & UPDATED ANSWERS
RATED 100% CORRECT
Which of the following is NOT a RECA educational resource for industry professionals?
- Correct Answer ✔✔ Spatial Information System (Spin 2)
Which entity has the authority to amend the Real Estate Act - Correct Answer ✔✔
Provincial Legislature
Which of the following measures the change in a cost of a fixed basket of goods and
services purchased by families over a period of time - Correct Answer ✔✔ Consumer
Price Index (CPI)
Which of the following will occur to the supply of a good when there is a change in
quantity supplied due to a price increase? - Correct Answer ✔✔ an increase in quantity
supplied
Microeconics - Correct Answer ✔✔ studies the basic theories of supply and demand as
it relates to individuals, households and firms
Resource Markets - Correct Answer ✔✔ facilitate the exchange of factors of production
What causes the quantity demanded to shift? - Correct Answer ✔✔ change in tastes,
expectations, and number of consumers
benefits of economic growth - Correct Answer ✔✔ depletion of natural resources
Real Property Report - Correct Answer ✔✔ document produced by Alberta Land
Surveyor
Which of the following is not a non-price determinant of demand - Correct Answer ✔✔
cost of production
What type of economy does Canada have? - Correct Answer ✔✔ mixed economy
Benefits of RECAS trust assurance and practice review program - Correct Answer ✔✔ -
effective record keeping and administrative procedures
- education and advice in relation to brokerage trust accounting
- identifies and resolves potential problems regarding brokerage trust accounting
requirements
, Responsibilities of RECA - Correct Answer ✔✔ - Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
Four factors of production - Correct Answer ✔✔ land, labor, capital, entrepreneurship
RECA provides the following annual reports - Correct Answer ✔✔ - financial reports
- industry statistics
- reports for the previous year
The structure of real estate in Alberta includes; - Correct Answer ✔✔ - local real estate
boards
- alberta real estate association
- canadian real estate association
Referral definition - Correct Answer ✔✔ The act of recommending or directing a person
for service to another person or business
- brokerage is responsible for paying and receiving remuneration in connection to trade
RECAS professional conduct review Objects - Correct Answer ✔✔ - gather all relevant
information
- treat parties fairly
-gather information efficiently
Amendments to the Act - Correct Answer ✔✔ - can be made by provincial legislature
with recommendations by the Minister of Service Alberta
Amendments to the rules - Correct Answer ✔✔ The rules contain the day to day
activities
- council has the authority to create and amend
Executive Director can suspend license - Correct Answer ✔✔ - determines the length of
suspension
- serves the decision on the industry professional
- will consider the evidence when making the decision
Whats includes in written service agreements? - Correct Answer ✔✔ - the services to
be provided by the brokerage
- the responsibilities of each party to the agreement
- the names of the parties to the agreement
failure to immediately notify Executive Director of changes to information provided in
support of license results in: - Correct Answer ✔✔ - Exec. Director may refer the matter
for a professional conduct review
- Exec. Director may suspend industry professionals license
- Exec. director may cancel the industry professionals license
