Test Bank Champions Real Estate Finance
Exam Question and Answer 2026/2027 |
100% Verified A+ | Key Areas
• The process of creating a new mortgage loan -✓✓Origination
• The process of collecting information about a borrower in order to build a loan file that
will be used to make an underwriting decision -✓✓Loan Processing
• The process of transferring funds to a title or escrow company for disbursement -
✓✓Funding
• The process of evaluating a borrower's loan application to determine the risk involved
for the lender -✓✓Underwriting
• When was the FHA created? -✓✓1934
• Who funds the FHA? -✓✓The FHA funds itself
• How long is the lifespan of a $20 bill? -✓✓7.9 years
• What is the "prime rate?" -✓✓The interest rate that is determined by individual banks
• Who provides VA home loans? -✓✓Private lenders
• The USDA Single Family Housing Direct Home Loan is also known as ____________
-✓✓Section 502 Direct Loan Program
• In order to qualify for exemption from capital gains, the property must have been the
primary residence for two of the previous _______________ years. -✓✓5 years
• A loan with no discount points is known as a _____________. -✓✓Par Loan
• Relates to federal government spending -✓✓Fiscal Policy
• Insures deposits in banks and thrift
institutions -✓✓Federal Deposit Insurance Corporation
• Set by the board of directors of the
Federal Reserve Banks, subject to
approval by the Board of Governors -✓✓Discount Rate
, • Policy that deals with interest rates
and the supply of money in the US
economy. -✓✓Monetary Policy
• Buying or selling government securities by the Federal Reserve -✓✓Open-Market
Operations
• Through which avenue does the US Treasury promote economic growth?
A - Legislating tax cuts to stimulate the economy
B - Policies that support job creation
C - Giving grants to government enterprises
D - All of these -✓✓B - Policies that support job creation
• Which of the following is NOT a function of the Department of the Treasury?
A - Enforcing federal finance and tax laws
B - Currency and coinage
C - Campaign finance reform
D - Supervising national banks and thrift institutions -✓✓C - Campaign finance reform
• According to the Taxpayer Bill of Rights, taxpayers have the right to:
a. pay no more than the correct amount of tax
b. be informed
c. privacy
d. all of these -✓✓D - All of these
• When was HARP introduced? -✓✓2009
• Which refinancing option does HARP offer?
a. change from an adjustable to a fixed rate mortgage
b. lower interest rates
c. shorter term loans
d. all of these -✓✓D - All of these
• What is fiat money? -✓✓Currency that is not backed by any precious metals
• At the treasury level, funds can be raised to pay for government spending by
increasing borrowing and? -✓✓Raising taxes
• The ____________ is the interest rate a reserve bank charges eligible financial
institutions to borrow funds on a short term basis. -✓✓Discount rate
Exam Question and Answer 2026/2027 |
100% Verified A+ | Key Areas
• The process of creating a new mortgage loan -✓✓Origination
• The process of collecting information about a borrower in order to build a loan file that
will be used to make an underwriting decision -✓✓Loan Processing
• The process of transferring funds to a title or escrow company for disbursement -
✓✓Funding
• The process of evaluating a borrower's loan application to determine the risk involved
for the lender -✓✓Underwriting
• When was the FHA created? -✓✓1934
• Who funds the FHA? -✓✓The FHA funds itself
• How long is the lifespan of a $20 bill? -✓✓7.9 years
• What is the "prime rate?" -✓✓The interest rate that is determined by individual banks
• Who provides VA home loans? -✓✓Private lenders
• The USDA Single Family Housing Direct Home Loan is also known as ____________
-✓✓Section 502 Direct Loan Program
• In order to qualify for exemption from capital gains, the property must have been the
primary residence for two of the previous _______________ years. -✓✓5 years
• A loan with no discount points is known as a _____________. -✓✓Par Loan
• Relates to federal government spending -✓✓Fiscal Policy
• Insures deposits in banks and thrift
institutions -✓✓Federal Deposit Insurance Corporation
• Set by the board of directors of the
Federal Reserve Banks, subject to
approval by the Board of Governors -✓✓Discount Rate
, • Policy that deals with interest rates
and the supply of money in the US
economy. -✓✓Monetary Policy
• Buying or selling government securities by the Federal Reserve -✓✓Open-Market
Operations
• Through which avenue does the US Treasury promote economic growth?
A - Legislating tax cuts to stimulate the economy
B - Policies that support job creation
C - Giving grants to government enterprises
D - All of these -✓✓B - Policies that support job creation
• Which of the following is NOT a function of the Department of the Treasury?
A - Enforcing federal finance and tax laws
B - Currency and coinage
C - Campaign finance reform
D - Supervising national banks and thrift institutions -✓✓C - Campaign finance reform
• According to the Taxpayer Bill of Rights, taxpayers have the right to:
a. pay no more than the correct amount of tax
b. be informed
c. privacy
d. all of these -✓✓D - All of these
• When was HARP introduced? -✓✓2009
• Which refinancing option does HARP offer?
a. change from an adjustable to a fixed rate mortgage
b. lower interest rates
c. shorter term loans
d. all of these -✓✓D - All of these
• What is fiat money? -✓✓Currency that is not backed by any precious metals
• At the treasury level, funds can be raised to pay for government spending by
increasing borrowing and? -✓✓Raising taxes
• The ____________ is the interest rate a reserve bank charges eligible financial
institutions to borrow funds on a short term basis. -✓✓Discount rate
