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Finance > Chapter 20 > Flashcards

Chapter 20 Flashcards

1
Q

the land and buildings that produce rental income

A

commercial property

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2
Q

real estate investment in which you hold legal title to a property

A

direct investment

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3
Q

real estate investment in which a trustee is appointed to hold legal title to the property on behalf of an investor group or group of investors

A

indirect investment

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4
Q

temporary association of individuals or business firms organized to perform a task that requires a large amount of funds

A

syndicate

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5
Q

an investment in a group of mortgages that have been purchased by a government agency

A

participation certificate (PC)

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6
Q

the use of borrowed funds for direct investment purposes

A

financial leverage

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7
Q

include such valuable ores as gold, platinum, and silver

A

precious metals

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8
Q

rough mineral deposits (usually crystals) that are dug from the earth by miners and then cut and shaped into brilliant jewels

A

precious gems

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9
Q

rare coins, works of art, antiques, paintings, stamps, rare books, comic books, sports memorabilia, and other items that appeal to collectors and investors

A

collectibles

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10
Q

responsible

A

liable

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11
Q

higher than expected

A

handsome

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12
Q

protection

A

hedge

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13
Q

rise quickly

A

soar

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14
Q

______ is using borrowed money so that you can purchase more expensive property.

A

financial leverage

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15
Q

The owner of a(n) _____ holds the legal title to a purchased property, such as a single-family home or duplex.

A

direct investments

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16
Q

Many people purchase property in hopes that it will become more desirable and they will be able to sell it for a(n) _____ profit in the future.

A

handsome

17
Q

Palladium, rhodium, and silver are examples of _____.

A

precious metals

18
Q

When prices rise quickly, they are said to _____.

A

soar

19
Q

A(n) _____ is an investment in which a trustee is appointed to hold legal title to a property on behalf of an investor or group of investors.

A

indirect investments

20
Q

A temporary association of individuals organized to invest in real estate that requires a large amount of funds is an example of a(n) _____.

A

sydicates

21
Q

A general partner takes complete responsibility for a business, but a limited partner is only ____ for the money he or she has invested.

A

liable

22
Q

________ are popular with investors thanks in part to ease of storage and durability.

A

Precious gems

23
Q

Land and buildings that produce rental income are called _____.

A

commercial property

24
Q

A relatively risk-free real estate investment that is considered a mutual fund and can be purchased from federal agencies is a(n) ______.

A

participation certificate (PC)

25
Q

Rare coins and works of art are examples of another type of investment, known as ____.

A

collectables

26
Q

An example of a direct investment is a…
A. home mortgage
B. Real estate syndicate
C. Real estate investment trust
D. Ginnie Mae certificate

A

home mortgage

27
Q

In a syndicate organized as a limited partnership, responsibility for all the partnership’s liabilities belongs to the…
A. Limited partners
B. General partner
C. Tenants
D. Federal government

A

general partner

28
Q

An investment in a real estate syndicate can be…
A. Depreciable
B. Deductible
C. Tax-exempt
D. Diversified

A

diversified

29
Q

REIs might invest the participants money in any of the following items except…
A. Construction loans
B. Financial instruments
C. Properties
D. Mortgages

A

Financial instruments

30
Q

Which of the following are examples of participation certificates?
A. Maes and Macs
B. U.S. Treasury Bills
C. REITs
D. Real estate syndicates

A

Maes and Macs

31
Q

Generally, an indirect investment in real estate is…
A. easily converted into cash
B. a hedge against inflation
C. only for the wealthy
D. A good tax shelter

A

a hedge against inflation

32
Q

The price of gold might fall when…
A. War threatens
B. the government seems unstable
C. Countries make peace
D. Inflation soars

A

countries make peace

33
Q

In January 2005, which of the following precious metals was most valuable?
A. Gold
B. Platinum
C. Palladium
D. Rhodium

A

Rhodium

34
Q

A gem’s certificate should list each of the following characteristics except…
A. Weight
B. Color
C. Density
D. Clarity

A

Density

35
Q

Drawbacks of finding collectibles on the internet include the…
A. Inability to comparison shop
B. Lack of a wide range of sellers
C. Inability to examine items for flaws
D. Frequently charged buyers commissions

A

Inability to examine items for flaws

Finance (7 decks)

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