__________ provides the flow of money and credit needed to complete transactions for the purchase and/or development of real property.
Real estate finance
Which of the following statements best describes the nature of markets?
They are perfect or imperfect
What comprises the single largest component of wealth for individuals?
Real estate
The __________ is an increase in the pace of economic activity.
expansion
What is a debt instrument in which the issuer guarantees the payment of interest and principal on the money borrowed at a specified date?
A bond
Which of the following is not one of the three distinct categories of finance?
Private
__________ are changes in business and economic activity that occur within the year.
Short-term fluctuations
__________ are the primary source of funds for retail lenders.
Deposits
The withdrawal of funds from intermediary financial institutions, such as banks, credit unions, and thrifts, to invest the funds directly in other investments is known as:
disintermediation.
__________ are changes in the market in a consistent direction that occur over a long-term period.
Trends
Corporate finance involves the managing of assets and debts for:
a business.
Real estate has unique features in its market, which means it is:
heterogeneous.
Which of the following is not part of public finance?
Stocks
Capital markets, which consist of markets for __________ and __________, deal in long-term financing and securities.
stocks, bonds
Earning more money and spending less is the basis of:
personal finance.
A large number of buyers and sellers makes for a(n):
efficient market.
__________ are the ups and downs in economic activity, defined in terms of periods of expansion followed by periods of contraction.
Business cycles
The __________ is a slowdown in the pace of economic activity.
contraction
The __________ is the upper turning point of a business cycle
peak
What type of market operates under recognized rules regarding a particular commodity?
An organized market
What type of finance provides the flow of money and credit needed to complete transactions for the purchase and/or development of real property?
Real estate finance
__________ is another significant category of secured lending for many retail lenders.
Automobile lending
What market provides financing through the issuance and trade of shares or common stock?
Stock market
All of the following relate to finance, except:
the creation of housing developments.
Which of the following is true regarding fees on deposits and loans?
Retail lenders can earn income from fees for services like cashier's checks and safe deposit boxes.
Retail lenders generally lend money for all of the following, except:
rent.
The two phases and two turning points of the real estate cycle are:
expansion, peak, contraction, and trough.
__________ includes tax systems, government expenditures, budget procedures, stabilization instruments, debt issues, and other government concerns.
Public finance
Which of the following information resources provides information about the risk associated with mortgage banking?
Mortgage Banking, Office of the Comptroller of the Currency
When the __________ peaks and __________ begins, the entire region may experience bad loans, foreclosures, unemployment, and even recession.
expansion/contraction
The real estate market is marked by speculation and expansion of credit, which stimulates the local, regional, and even national economy. When the expansion of the real estate market peaks and contraction begins, what may the entire region experience?
Bad loans, foreclosures, unemployment, and recession
__________ involves managing assets and debt for a business. Businesses obtain financing through equity investments and credit arrangements, and by purchasing securities.
Corporate finance
Which of the following information resources provides information about the unofficial beginning and ending dates of national economic expansions and contractions
National Bureau of Economic Research (www.nber.org)
__________ are, in essence, personal lines of credit that can be drawn down at any time.
Credit cards
There are three major financial markets in the world. Which of the following is not one of those markets?
Paris
__________ includes proper management of an individual's income and expenses so enough money is left over for savings.
Personal finance
Which of the following information resources provides information about the Median and Average sale Price of Houses Sold?
U.S. Census Bureau (www.census.gov)
__________ involves lending money to consumers, for whatever purposes they wish, with the equity in their home.
Home equity lending
The financial market has many subcategories, one of which is real estate finance. The subtype market that deals with instruments that are paid off by a borrower or cashed in by a lender in 1 year or less is called a __________ market.
money
Which of the following is the market in which long-term or intermediate-term securities are traded by buyers and sellers?
Capital market
Which of the following correctly defines collateral?
Collateral is something of value given as security for a debt.
Which of the following is true regarding mortgages and sources of income?
All of the choices apply.
Consumer lending makes up the bulk of retail lender lending activity, and of this, residential mortgages make up by far the largest share.
The homes themselves are most often the security that collateralizes the loan.
Mortgages a
The amount charged by a lender to a borrower for the use of assets is the:
interest rate.
Which of the following statements regarding cycles is correct?
Cycles are periodic, irregular up and down movements of economic activity that take place over a period of 2 to 6 years.
In some cases, lenders are not well equipped to manage the back office tasks that go into servicing loans, so they sell the rights to service the loans, which include:
collecting and forwarding payments. handling escrow accounts. responding to borrower questions to another financial institution. all of the choices apply.