chap 12 Flashcards
(29 cards)
the percentage of a sum of money charged for its use is known as a/an…?
AInterest rate
BDiscount rate
CCharge rate
DUse rate
Interest rate
The Federal Reserve System is under the control of the…?
AU.S. President
BCentral Board of Governors
CCongress
DThe House of Representatives
Central Board of Governors
Riskier financing demands a higher interest rate…?
AT (True)
BF (False)
true
Which of the following is an example of a government sponsored enterprise…?
AFannie Mae
BFreddie Mac
CGinnie Mae
DAll of the above
all of the above
The Federal National Mortgage Association is also known as…?
AFarmer Mac
BFreddie Mac
CFannie Mae
DGinnie Mae
fannie Mac
The Federal Home Loan Mortgage Corporation is also known as…?
AFarmer Mac
BFreddie Mac
CFannie Mae
DGinnie Mae
freddie Mac
The Government National Mortgage Association is also known as…?
AFarmer Mac
BFreddie Mac
CFannie Mae
DGinnie Mae
Ginnie Mae
Farmer Mac is primarily responsible for purchasing…?
ACommercial loans
BResidential loans
CAgricultural loans
DInvestment loans
Agricultural loans
Which of the following operates in the secondary mortgage market…?
AFannie Mae
BFreddie Mac
CGinnie Mae
DAll of the above
All of the above
An institutional lender is not subject to government regulations…?
AT (True)
BF (False)
False
Which of the following is an example of an institutional lender…?
ACommercial banks
BCredit unions
CPension funds
DREIT
Commercial banks
Which of the following is an acronym that describes the components of a typical monthly mortgage payment…?
APETE
BCADDL
COLD CAR
DPITI
PITI
A real estate agent should not provide financial advice to their clients…?
AT (True)
BF (False)
True
Seller financing is illegal in California…?
AT (True)
BF (False)
False
A mortgage securing a loan made by investors without governmental underwriting is referred to as a…?
AConventional loan
BUnconventional loan
CFHA-insured loan
DStraight loan
Conventional loan
The relationship between the amount of a mortgage loan and the lender’s opinion of the value of the property pledged to secure payment of the loan is known as the…?
AFront-end ratio
BBack-end ratio
CLoan-to-value ratio
DLending ratio
Loan-to-value ratio
A loan made to finance the actual construction or improvement on land is known as a…?
AReverse annuity mortgage
BARM
CConstruction loan
DTerm loan
Construction loan
The activity of lenders making mortgage loans to individual borrowers occurs in the…?
APrimary mortgage market
BSecondary mortgage market
CStock market
DOpen mortgage market
Primary mortgage market
Mortgage guaranty insurance available to conventional lenders on the first, high risk portion of a loan is referred to as…?
AMortgage guaranty insurance available to conventional lenders on the first, high risk portion of a loan is referred to as…?
APrivate mortgage insurance
BPremium mortgage insurance
CHomeowners insurance
DHigh risk mortgage insurance
BPremium mortgage insurance
CHomeowners insurance
DHigh risk mortgage insurance
APrivate mortgage insurance
Which of the following is an example of a non-institutional lender…?
AREIT
BCredit unions
CPension funds
DAll of the above
All of the above
A mortgage loan which bears interest at a rate subject to change during the term of the loan, predetermined or otherwise, is referred to as a/an…?
AReverse annuity mortgage
BAdjustable rate mortgage
CStraight mortgage
DUnconventional mortgage
Adjustable rate mortgage
This type of loan is used by older people who need additional income and want to take advantage of the equity in their homes…?
AStraight loan
BUnconventional loan
CReverse annuity mortgage
DAdjustable rate mortgage
Reverse annuity mortgage
A mortgage in which the interest does not change is known as a…?
AFixed interest mortgage
BTerm loan
CARM
DStraight loan
Fixed interest mortgage
The Federal Reserve can do which of the following…?
ABuy securities
BChange the discount rate
CCreate higher reserve requirements
DAll of the above
All of the above
