FINC 371 Exam Questions with Correct Answers Latest Version 2025
Buy gov't bonds - Effect on money supply? - Answers Increases
Buy gov't bonds - effect on int rates? - Answers Lowers
Buy gov't bonds - effect on economy? - Answers Stimulate
Raise reserves - effect on money supply? - Answers Lowers
Raise reserves - effect on int rates? - Answers Raises
What is real estate? - Answers Land plus improvements, including anything permanently attached or
affixed to land.
What is the definition of real property - Answers Encompasses all rights, interests, and benefits inherent
in the ownership of physical real estate
"Bundle of Rights" including the right to use, sell, lease, enter, or give away property
6 most important factors in real estate? - Answers Location, location, location
Timing, timing, timing
4 Real Estate Sectors - Answers Residential
Commercial
Industrial
Ranch/Agricultural
7 Real Estate Special Characteristics - Answers 1. Fixed Location
2. Uniqueness
3. Interdependence of Land Uses
4. Long Life
5. Long-Term commitment
6. Large Transactions
7. Long Gestation Period
Highest potential return of all real estate careers? - Answers Developer
4 Food Groups of CRE? - Answers Office
, Retail
Industrial
Multifamily
Most distinguishing char. of real estate? - Answers Fixed Location
Do changes in the real estate market have a large impact on the overall economy? - Answers Yes, real
estate is a very large component of the total US economy
Who earns more--salespersons or brokers? - Answers Brokers
The future interest held by grantor at termination of a life estate which he/she granted someone? -
Answers Reversion
Remainder
Most common type of concurrent real estate? - Answers Tenancy in COMMON
Township has how many square miles? - Answers 36
An acre has how many square feet? - Answers 43,560
How many feet in a mile - Answers 5280
Not presently possessed interest in real estate? - Answers Reversion
Tenancy in common: Alex, Bob, Chuck all own 1/3. Bob has a son Cade. Bob dies. Under no
extraordinary circumstances, who own's Bob's interest? - Answers Cade
Form of multiple ownership where each owner has undivided proportional interest although shares
don't have to be equal - Answers Tenancy in COMMON
Fullest and most complete estate - Answers Fee simple ABSOLUTE
Which statement creates a qualified estate? - Answers To John until he DEVELOPS the property
Primary difference between Life Estate and Fee Simple Absolute estate? - Answers Life estates
terminate following the death of a named person
Easement by reservation - Answers Reserving easement rights when selling part of property (keeping
rights to a road running through a sold piece of land)
Easement by grant - Answers Giving another person an easement directly
How are CC&R's detrimental to properties that are subject to them? - Answers Can limit property
owners ability to make improvements/changes to the property
Buy gov't bonds - Effect on money supply? - Answers Increases
Buy gov't bonds - effect on int rates? - Answers Lowers
Buy gov't bonds - effect on economy? - Answers Stimulate
Raise reserves - effect on money supply? - Answers Lowers
Raise reserves - effect on int rates? - Answers Raises
What is real estate? - Answers Land plus improvements, including anything permanently attached or
affixed to land.
What is the definition of real property - Answers Encompasses all rights, interests, and benefits inherent
in the ownership of physical real estate
"Bundle of Rights" including the right to use, sell, lease, enter, or give away property
6 most important factors in real estate? - Answers Location, location, location
Timing, timing, timing
4 Real Estate Sectors - Answers Residential
Commercial
Industrial
Ranch/Agricultural
7 Real Estate Special Characteristics - Answers 1. Fixed Location
2. Uniqueness
3. Interdependence of Land Uses
4. Long Life
5. Long-Term commitment
6. Large Transactions
7. Long Gestation Period
Highest potential return of all real estate careers? - Answers Developer
4 Food Groups of CRE? - Answers Office
, Retail
Industrial
Multifamily
Most distinguishing char. of real estate? - Answers Fixed Location
Do changes in the real estate market have a large impact on the overall economy? - Answers Yes, real
estate is a very large component of the total US economy
Who earns more--salespersons or brokers? - Answers Brokers
The future interest held by grantor at termination of a life estate which he/she granted someone? -
Answers Reversion
Remainder
Most common type of concurrent real estate? - Answers Tenancy in COMMON
Township has how many square miles? - Answers 36
An acre has how many square feet? - Answers 43,560
How many feet in a mile - Answers 5280
Not presently possessed interest in real estate? - Answers Reversion
Tenancy in common: Alex, Bob, Chuck all own 1/3. Bob has a son Cade. Bob dies. Under no
extraordinary circumstances, who own's Bob's interest? - Answers Cade
Form of multiple ownership where each owner has undivided proportional interest although shares
don't have to be equal - Answers Tenancy in COMMON
Fullest and most complete estate - Answers Fee simple ABSOLUTE
Which statement creates a qualified estate? - Answers To John until he DEVELOPS the property
Primary difference between Life Estate and Fee Simple Absolute estate? - Answers Life estates
terminate following the death of a named person
Easement by reservation - Answers Reserving easement rights when selling part of property (keeping
rights to a road running through a sold piece of land)
Easement by grant - Answers Giving another person an easement directly
How are CC&R's detrimental to properties that are subject to them? - Answers Can limit property
owners ability to make improvements/changes to the property
