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An economic recovery is defined as
A)
two successive quarterly declines in the gross domestic product.
B)
two successive quarterly increases in the gross domestic product.
C)
a period of higher housing prices.
D)
two successive periods of stock market gains.
B)
two successive quarterly increases in the gross domestic product.
Explanation
When consumers, lured by lower prices, venture back into the market, business activity increases and
confidence begins to return. Slowly, production facilities gear up to meet the new consumer demand,
capital begins to flow back into business enterprises, and additional employees are hired.
The three types of operating expenses of an income property are
A)
fixed, debt service, and reserves for replacements.
B)
reserves for replacements, fixed, and variable.
C)
variable, income taxes, and fixed.
D)
reserves for replacements, variable, and income taxes.
B)
reserves for replacements, fixed, and variable.
Explanation
Operating expenses are divided into three categories: fixed expenses, variable expenses, and reserves
for replacement.
A person applies for a $300,000, 30-year fixed-rate mortgage loan at 4%. The mortgage payment
factor is .00477415. Taxes for the year are $4,000, and insurance is $2,400. Her monthly payment for
principal, interest, taxes, and insurance (PITI) will be
A)
$1,432.25.
B)
$1,773.64.
C)
$1,273.64.
D)
$1,965.58.
D)
$1,965.58.
58. $300,000 × .00477415 = $1,432.25 principal and interest. $4,000 taxes ÷ 12 months = 333.33.
$2,400 insurance ÷ 12 months = 200. $1,432.25 + $333.33 + $200 = $1,965.58 total PITI.
,A sales associate receives a good-faith deposit from a buyer on Wednesday. The broker must deposit
the funds into the escrow account no later than the following
A)
Tuesday.
B)
Monday.
C)
Thursday.
D)
Friday.
B)
Monday.
FREC rules require that the sales associate must give the broker the funds within one business day.
The broker must deposit the funds in a bank within three business days.
The minimum legal description for a platted subdivision would include
A)
street address, lot and block number, and subdivision name.
B)
county, lot and block number, name of subdivision, and lot dimensions.
C)
subdivision name, county, reference to section, township, and range.
D)
subdivision name, county, lot and block number, plat book and page number.
D)
subdivision name, county, lot and block number, plat book and page number.
Antitrust laws
A)
allow brokers to boycott cut-rate brokers' listings.
B)
prohibit commercial advertising in faxes.
C)
allow brokers to split up market areas.
D)
prohibit price fixing.
D)
prohibit price fixing.
Explanation
Some of the prohibited actions under antitrust laws include:
conspiracy to set prices;
splitting up competitive market areas;
conspiring to boycott cut-rate brokers or otherwise interfering with their business; and
requiring a minimum commission before allowing listings to be circulated in any service, such as
through an MLS.
Hearing, understanding, and evaluation are part of what type of skill set?
A)
Oral
B)
, Written
C)
Nonverbal
D)
Listening
D)
Listening
What are the requirements for persons disturbing lead-based paint in a house?
A)
The owner must leave the house vacant for a minimum of 30 days after cleanup.
B)
The person must have taken a 45-hour course in radon gas remediation.
C)
Lead-based paint may not be disturbed by law.
D)
The person must be certified and follow specific work procedures.
D)
The person must be certified and follow specific work procedures.
The Civil Rights Act of 1866 prohibits discrimination based on
A)
race, color, religion, sex, national origin, family status, or handicap.
B)
sexual preference.
C)
religion.
D)
race.
D)
race.
In order to make successful prospecting calls, a sales associate should
A)
call from the phone book without accessing the do-not-call registry.
B)
be consistent, making them at the same time each day.
C)
make them at random hours on different days.
D)
make them whenever the sales associate feels up to it.
B)
be consistent, making them at the same time each day.
At closing, a seller will be asked to sign an affidavit that
A)
there are no liens or rights to file a lien on the property.
B)
he will sign the deed when it is presented to him.
C)
he agrees with the closing disclosure.
D)
he made required repairs to the property.