Real Estate Principles: A Value Approach, 5e (Ling)
Chapter 1 The Nature of Real Estate and Real Estate Markets
1. When viewed as a tangible asset, real
... [Show More] estate can be defined as the land and its permanent
improvements. Improvements on the land include:
A. fences
B. walkways
C. sewer systems
D. streets
2. All of the following are examples of an improvement on the land EXCEPT:
A. Fences
B. Building
C. Walls
D. Streets
3. Real estate is defined as land and its permanent improvements. Which of the following is an
example of an improvement to the land?
A. Fence
B. Building
C. Sewer system
D. Personal property
4. Real estate consists of the physical structures and infrastructure that accompany the land. All
of the following are examples of an improvement to the land EXCEPT:
A. Walkways
B. Building
C. Sewer system
D. Streets
5. Real estate is property, which can be either a tangible or an intangible asset. Which of the
following would be considered an intangible asset?
A. Land
B. Building
C. Mortgage
D. Fence
6. Which of the following would be considered a tangible asset?
A. Land
B. Lease agreement
C. Mortgage
D. Listed REIT
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7. If we desire to classify land by its use, land that does not include any improvements to the land
would be categorized as:
A. "Raw" land
B. Building site
C. Developed land
D. Property infrastructure
8. The size of a single family residential lot is typically:
A. less than one acre
B. between one and two acres
C. between two and three acres
D. greater than three acres
9. As of 2015, the single largest asset category in the net worth portfolios of households is:
A. government and corporate bonds
B. stocks and mutual fund shares
C. consumer durable goods
D. housing
10. Real estate values derive from the interaction of three different sectors in the economy.
Which of the following sectors serves to allocate financial resources among households and
firms requiring funds?
A. User market
B. Capital market
C. Government
D. Property market
11. The demand for real estate derives from the need that market participants (e.g., owner
occupants, tenants, renters) have for shelter and convenient access to other locations. This
competition for physical location and space occurs in the:
A. User Market
B. Capital Market
C. Government Sector
D. Property Market
12. The expected stream of rental income is capitalized into value by converting expected future
cash flows into present value through a process called:
A. amortization
B. discounting
C. compounding
D. accounting
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13. Capital markets can be divided into four main categories: private equity, public equity,
private debt, and public debt. An example [Show Less]