CHAMPIONS REAL ESTATE FINANCE EXAM 2024
ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE 400 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) / ALREADY
GRADED A+
_____ is the consummation of a contractual real estate transaction in which all
appropriate documents are signed, and the mortgage loan proceeds are disbursed
by the lender. - ANSWER: Closing
The primary determinants of real estate values are supply and _____. - ANSWER:
Demand
_____ is something of value that can be pledged as security for repayment of a loan.
- ANSWER: Collateral
Servicing includes which of the following activities? - ANSWER: Maintaining records
of payment
The monetary policies of the _____affects interest rates and the availability of funds.
- ANSWER: Federal Reserve
An excess supply of money in the market results in monetary _____. - ANSWER:
Inflation
Which agency insures deposits in banks and thrift institutions for up to $250,000? -
ANSWER: The Federal Deposit Insurance Corporation
The _____ is the interest rate a reserve bank charges eligible financial institutions to
borrow funds on a short-term basis. - ANSWER: Discount rate
Raising taxes and increasing borrowing are two ways at the treasury level to: -
ANSWER: Raise funds to pay for government spending
The Fed uses three primary monetary policy tools to influence the cost and
availability of credit: open market operations, the discount rate, and _____. -
ANSWER: Reserve requirements
When the costs of production and services increase, causing manufacturing prices to
rise, it is called _____. - ANSWER: Cost-push inflation
Which of the following transactions is exempt from RESPA? - ANSWER: Temporary
loans
, Under the _____, the use of certain terms in an advertisement triggers the need for
full disclosure of lending terms. - ANSWER: Truth in Lending Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act established the
_____. - ANSWER: Consumer Financial Protection Bureau
How can Sylvia ensure that Victor is properly licensed as an RMLO? - ANSWER: She
can look him up in the NMLSR
The secondary mortgage market was designed to provide greater liquidity to the
residential real estate market, primarily by _____. - ANSWER: The sale of mortgage
loans as investments
Loans originated to adhere to Fannie Mae, Freddie Mac, and Ginnie Mae
requirements for purchase are called _____. - ANSWER: Conforming loans
Which of the following housing objectives does Fannie Mae address? - ANSWER:
Regional imbalances of available mortgage credit, The origination of mortgages for
sale, The standardization of mortgage loans
A _____ lender is one who funds mortgage loans from deposits on hand, retaining
the loans long term. - ANSWER: Portfolio
is a government-sponsored enterprise with the mission of providing a secondary
market for agricultural real estate mortgage loans, rural housing mortgage loans,
and rural utility cooperative loans. - ANSWER: Farmer Mac
The secondary market provides greater _____ to the residential real estate market
by providing a steady supply of funds from investors. - ANSWER: Liquidity
Fannie Mae operates with _____ to enhance the flow of funds through the
secondary market to home buyers. - ANSWER: Private capital
The two largest issuers of Real Estate Mortgage Investment Conduits are _____ and
_____. - ANSWER: Fannie Mae and Freddie Mac
Which of the following statements is INCORRECT? - ANSWER: Ginnie Mae sells
mortgage-backed securities and purchases mortgage loans.
- ANSWER:
A(n) _____ is a person, corporation, or firm not otherwise in banking that provides
its own funds for mortgage financing purposes. - ANSWER: Mortgage banker
Which act increased the insurance coverage on all federally insured credit union
accounts up to $250,000? - ANSWER: Dodd-Frank Wall Street Reform Act
ACTUAL EXAM 2 VERSIONS (VERSION A AND B)
COMPLETE 400 QUESTIONS WITH DETAILED VERIFIED
ANSWERS (100% CORRECT ANSWERS) / ALREADY
GRADED A+
_____ is the consummation of a contractual real estate transaction in which all
appropriate documents are signed, and the mortgage loan proceeds are disbursed
by the lender. - ANSWER: Closing
The primary determinants of real estate values are supply and _____. - ANSWER:
Demand
_____ is something of value that can be pledged as security for repayment of a loan.
- ANSWER: Collateral
Servicing includes which of the following activities? - ANSWER: Maintaining records
of payment
The monetary policies of the _____affects interest rates and the availability of funds.
- ANSWER: Federal Reserve
An excess supply of money in the market results in monetary _____. - ANSWER:
Inflation
Which agency insures deposits in banks and thrift institutions for up to $250,000? -
ANSWER: The Federal Deposit Insurance Corporation
The _____ is the interest rate a reserve bank charges eligible financial institutions to
borrow funds on a short-term basis. - ANSWER: Discount rate
Raising taxes and increasing borrowing are two ways at the treasury level to: -
ANSWER: Raise funds to pay for government spending
The Fed uses three primary monetary policy tools to influence the cost and
availability of credit: open market operations, the discount rate, and _____. -
ANSWER: Reserve requirements
When the costs of production and services increase, causing manufacturing prices to
rise, it is called _____. - ANSWER: Cost-push inflation
Which of the following transactions is exempt from RESPA? - ANSWER: Temporary
loans
, Under the _____, the use of certain terms in an advertisement triggers the need for
full disclosure of lending terms. - ANSWER: Truth in Lending Act
The Dodd-Frank Wall Street Reform and Consumer Protection Act established the
_____. - ANSWER: Consumer Financial Protection Bureau
How can Sylvia ensure that Victor is properly licensed as an RMLO? - ANSWER: She
can look him up in the NMLSR
The secondary mortgage market was designed to provide greater liquidity to the
residential real estate market, primarily by _____. - ANSWER: The sale of mortgage
loans as investments
Loans originated to adhere to Fannie Mae, Freddie Mac, and Ginnie Mae
requirements for purchase are called _____. - ANSWER: Conforming loans
Which of the following housing objectives does Fannie Mae address? - ANSWER:
Regional imbalances of available mortgage credit, The origination of mortgages for
sale, The standardization of mortgage loans
A _____ lender is one who funds mortgage loans from deposits on hand, retaining
the loans long term. - ANSWER: Portfolio
is a government-sponsored enterprise with the mission of providing a secondary
market for agricultural real estate mortgage loans, rural housing mortgage loans,
and rural utility cooperative loans. - ANSWER: Farmer Mac
The secondary market provides greater _____ to the residential real estate market
by providing a steady supply of funds from investors. - ANSWER: Liquidity
Fannie Mae operates with _____ to enhance the flow of funds through the
secondary market to home buyers. - ANSWER: Private capital
The two largest issuers of Real Estate Mortgage Investment Conduits are _____ and
_____. - ANSWER: Fannie Mae and Freddie Mac
Which of the following statements is INCORRECT? - ANSWER: Ginnie Mae sells
mortgage-backed securities and purchases mortgage loans.
- ANSWER:
A(n) _____ is a person, corporation, or firm not otherwise in banking that provides
its own funds for mortgage financing purposes. - ANSWER: Mortgage banker
Which act increased the insurance coverage on all federally insured credit union
accounts up to $250,000? - ANSWER: Dodd-Frank Wall Street Reform Act
