Chapter 19 - Additional Questions

Question 1

All of the following could be participants in a real property market EXCEPT

• sellers
• landlords
• appraisers
• assessors

Answer 1

assessors

Question 2

The principle of supply and demand states that the price of a commodity, good, or service varies __________, but not necessarily _____________, with demand.

Answer 2

directly

proportionately

Question 3

Which of the following would NOT be considered a negative easement?

• access right of way
• conservation easement
• drainage easement
• historic preservation easement

Answer 3

access right of way

Question 4

An appraisal report is defined as “the ____________ communication of an appraisal; the document transmitted to the __________upon completion of an appraisal assignment.”

Answer 4

written or oral

client

Question 5

Supply and demand move in a(n) ____________ relationship.

• inverse
• proportionate
• reverse
• parallel

Answer 5

inverse

Question 6

“A business arrangement in which two or more persons jointly own a business and share in its profits and losses” is the definition of

• limited partnership
• partnership
• general partnership
• trust

Answer 6

partnership

Question 7

The ______ publishes “other communications” in the form of Advisory Opinions and USPAP FAQs.

• AQB
• Appraisal Subcommittee
• ASB
• Board of Trustees

Answer 7

ASB

Question 8

In the 1970s, who developed uniform rules for mortgage underwriting?

• FIRREA
• professional appraisal organizations
• the Appraisal Subcommittee
• Fannie Mae and Freddie Mac

Answer 8

Fannie Mae and Freddie Mac

Question 9

The government uses the process of condemnation to carry out its power of

• escheat
• taxation
• police power
• eminent domain

Answer 9

eminent domain = Eminent domain allows private land to be taken for the public good; with just compensation.

(escheat = the reversion of property to the state on the owner’s dying without legal heirs.)

Question 10

All of the following would be social influences on value EXCEPT

• ages of residents
• educational facilities
• family formations
• population trends

Answer 10

educational facilities

Question 11

The Uniform Commercial Code covers the sale of goods over $________.

• $250
• $500
• $2,500
• $5,000

Answer 11

$500

Question 12

In analyzing a real estate purchase contract, you should be able to find all of the following items EXCEPT

• sale price
• legal description
• date of sale
• amount of property taxes

Answer 12

amount of property taxes

Question 13

Transportation would be an example of a(n) __________ force affecting property values.

• environmental
• governmental
• local
• none of the above

Answer 13

governmental

Question 14

The _____ has oversight authority over state appraisal boards.

• AQB
• ABC
• ASC
• HUD

Question 15

Reporting requirements for real property appraisers are set forth in STANDARD ___ of the Uniform Standards of Professional Appraisal Practice.

Answer 15

2

Question 16

“A mortgage in which the interest rate may move up or down, following a specified schedule or in accordance with the movements of a standard or index to which it is tied” is the definition of a(n) ______________ mortgage.

• adjustable rate
• interest only
• index
• fluctuating

Answer 16

adjustable rate

Question 17

In USPAP, the word “Ethics” is defined

• in the DEFINITIONS section
• in the ETHICS STANDARD
• in STANDARD 1
• nowhere

Answer 17

nowhere