RECA FUNDAMENTALS EXAM AND STUDY GUIDE LATEST
ACTUAL EXAM 400 QUESTIONS AND CORRECT DETAILED
ANSWERS
Which of the following is NOT a RECA educational resource for industry
professionals? - ANSWER: Spatial Information System (Spin 2)
Which entity has the authority to amend the Real Estate Act - 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 - 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? - ANSWER: an increase in quantity
supplied
Microeconics - ANSWER: studies the basic theories of supply and demand as it
relates to individuals, households and firms
Resource Markets - ANSWER: facilitate the exchange of factors of production
What causes the quantity demanded to shift? - ANSWER: change in tastes,
expectations, and number of consumers
benefits of economic growth - ANSWER: depletion of natural resources
Real Property Report - ANSWER: document produced by Alberta Land Surveyor
Which of the following is not a non-price determinant of demand - ANSWER: cost of
production
What type of economy does Canada have? - ANSWER: mixed economy
Benefits of RECAS trust assurance and practice review program - 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 - ANSWER: - Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
, Four factors of production - ANSWER: land, labor, capital, entrepreneurship
RECA provides the following annual reports - ANSWER: - financial reports
- industry statistics
- reports for the previous year
The structure of real estate in Alberta includes; - ANSWER: - local real estate boards
- alberta real estate association
- canadian real estate association
Referral definition - 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 - ANSWER: - gather all relevant
information
- treat parties fairly
-gather information efficiently
Amendments to the Act - ANSWER: - can be made by provincial legislature with
recommendations by the Minister of Service Alberta
Amendments to the rules - ANSWER: The rules contain the day to day activities
- council has the authority to create and amend
Executive Director can suspend license - 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? - 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: - 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
How long is license valid if not registered with brokerage? - ANSWER: 36 months
Levels of Disclosure - ANSWER: 1. other party represented by another brokerage
2. other party not represented
3. other party represented by same brokerage
ACTUAL EXAM 400 QUESTIONS AND CORRECT DETAILED
ANSWERS
Which of the following is NOT a RECA educational resource for industry
professionals? - ANSWER: Spatial Information System (Spin 2)
Which entity has the authority to amend the Real Estate Act - 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 - 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? - ANSWER: an increase in quantity
supplied
Microeconics - ANSWER: studies the basic theories of supply and demand as it
relates to individuals, households and firms
Resource Markets - ANSWER: facilitate the exchange of factors of production
What causes the quantity demanded to shift? - ANSWER: change in tastes,
expectations, and number of consumers
benefits of economic growth - ANSWER: depletion of natural resources
Real Property Report - ANSWER: document produced by Alberta Land Surveyor
Which of the following is not a non-price determinant of demand - ANSWER: cost of
production
What type of economy does Canada have? - ANSWER: mixed economy
Benefits of RECAS trust assurance and practice review program - 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 - ANSWER: - Handling professional conduct review
- establishing industry standards of practice
- issuing authorization to trade in real estate
, Four factors of production - ANSWER: land, labor, capital, entrepreneurship
RECA provides the following annual reports - ANSWER: - financial reports
- industry statistics
- reports for the previous year
The structure of real estate in Alberta includes; - ANSWER: - local real estate boards
- alberta real estate association
- canadian real estate association
Referral definition - 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 - ANSWER: - gather all relevant
information
- treat parties fairly
-gather information efficiently
Amendments to the Act - ANSWER: - can be made by provincial legislature with
recommendations by the Minister of Service Alberta
Amendments to the rules - ANSWER: The rules contain the day to day activities
- council has the authority to create and amend
Executive Director can suspend license - 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? - 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: - 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
How long is license valid if not registered with brokerage? - ANSWER: 36 months
Levels of Disclosure - ANSWER: 1. other party represented by another brokerage
2. other party not represented
3. other party represented by same brokerage
