Question 1

Collecting for investment purposes is very similar to collecting as a hobby.

Accepted Answer

A) True 
 B)False

Question 2

Real property equity investments are a possible hedge against:

Accepted Answer

A)  deflation.
B)  disinflation.
C)  inflation.
D)  recession.
E)  unemployment.

Question 3

An example of an indirect real estate investment is:

Accepted Answer

A)  a single-family home.
B)  a duplex.
C)  a real estate investment trust.
D)  undeveloped land.
E)  an apartment building.

Question 4

Coin dealers,precious metals dealers,and some banks sell gold bullion in amounts ranging from ________ grams to 500 ounces or more.

Accepted Answer

A)  5
B)  10
C)  25
D)  50
E)  There is no minimum order.

Question 5

Factors such as fear of war,political instability,and inflation cause gold prices to decline.

Accepted Answer

A) True 
 B)False

Question 6

What is the approximate annual depreciation for tax purposes on other types of real estate besides residential real estate if the property was purchased at a cost of $315,000?

Accepted Answer

A)  $30,000
B)  $3,150
C)  $15,000
D)  $10,000
E)  $31,500

Question 7

Real estate investment trusts are required by federal law to have at least 500 shareholders.

Accepted Answer

A) True 
 B)False

Question 8

Investments in silver,platinum,palladium,and rhodium are not used as a hedge against inflation.

Accepted Answer

A) True 
 B)False

Question 9

Home ownership rates are highest among those individuals in which age group?

Accepted Answer

A)  Under 34
B)  35 - 44
C)  45 - 54
D)  55 - 64
E)  65 and over

Question 10

A REIT is a firm that pools investor funds and invests them in real estate or uses them to make what kind of loans?

Accepted Answer

A)  New car loans
B)  Construction loans
C)  Mortgage loans
D)  Both construction and mortgage loans
E)  Car,construction,and mortgage loans

Question 11

Nowadays,gold certificates:

Accepted Answer

A)  offer you a method of holding gold without taking physical delivery
B)  are issued by individual banks in Germany or Switzerland that hold the metal on your behalf
C)  provide a way to avoid storage and personal security problems
D)  provide liquidity because you can sell portions of the holdings if needed
E)  All of these

Question 12

Ginnie Maes are backed by the full faith and credit of the Federal Government.

Accepted Answer

A) True 
 B)False

Question 13

With an indirect real estate investment,the investors appoint a trustee to hold legal title on behalf of all the investors in the group.

Accepted Answer

A) True 
 B)False

Question 14

The basic unit of gold bullion is one troy ounce.

Accepted Answer

A) True 
 B)False

Question 15

It may take months to sell commercial property or limited partnership shares.

Accepted Answer

A) True 
 B)False

Question 16

High interest rates in the economy cause gold prices to:

Accepted Answer

A)  skyrocket.
B)  increase moderately.
C)  remain stable.
D)  decline.
E)  change,but the direction of the change cannot be predicted.

Question 17

Which of the following do not create management problems?

Accepted Answer

A)  REITs
B)  Mortgages
C)  Participation certificates
D)  Limited partnerships
E)  None of the these

Question 18

Gold bullion poses storage problems.

Accepted Answer

A) True 
 B)False

Question 19

The primary reason people buy a vacation home is:

Accepted Answer

A)  to use as a family vacation retreat.
B)  for tax reasons.
C)  for rental income.
D)  for their grown children to live in.
E)  to eventually use it as their primary residence.

Question 20

Real estate investment trusts are government-owned real estate companies.

Accepted Answer

A) True 
 B)False

Exam 17: Investing in Real Estate and Other Investment Alternatives

Ginnie Maes are backed by the full faith and credit of the Federal Government.

Correct AnswerverifiedShow Answer

Home ownership rates are highest among those individuals in which age group?

Correct AnswerverifiedShow Answer

High interest rates in the economy cause gold prices to:

Correct AnswerverifiedShow Answer

Real estate investment trusts are government-owned real estate companies.

Correct AnswerverifiedShow Answer

Which of the following do not create management problems?

Correct AnswerverifiedShow Answer

Nowadays,gold certificates:

Correct AnswerverifiedShow Answer

A REIT is a firm that pools investor funds and invests them in real estate or uses them to make what kind of loans?

Correct AnswerverifiedShow Answer

What is the approximate annual depreciation for tax purposes on other types of real estate besides residential real estate if the property was purchased at a cost of $315,000?

Correct AnswerverifiedShow Answer

The basic unit of gold bullion is one troy ounce.

Correct AnswerverifiedShow Answer

An example of an indirect real estate investment is:

Correct AnswerverifiedShow Answer

Investments in silver,platinum,palladium,and rhodium are not used as a hedge against inflation.

Correct AnswerverifiedShow Answer

Real property equity investments are a possible hedge against:

Correct AnswerverifiedShow Answer

With an indirect real estate investment,the investors appoint a trustee to hold legal title on behalf of all the investors in the group.

Correct AnswerverifiedShow Answer

Collecting for investment purposes is very similar to collecting as a hobby.

Correct AnswerverifiedShow Answer

It may take months to sell commercial property or limited partnership shares.

Correct AnswerverifiedShow Answer

Real estate investment trusts are required by federal law to have at least 500 shareholders.

Correct AnswerverifiedShow Answer

Coin dealers,precious metals dealers,and some banks sell gold bullion in amounts ranging from ________ grams to 500 ounces or more.

Correct AnswerverifiedShow Answer

Factors such as fear of war,political instability,and inflation cause gold prices to decline.

Correct AnswerverifiedShow Answer

Gold bullion poses storage problems.

Correct AnswerverifiedShow Answer

The primary reason people buy a vacation home is:

Correct AnswerverifiedShow Answer

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