Real Estate Finance and Economics
Quiz – January 27, 2022
1. A situation wherein sellers are more than the buyers: A
a. Buyer’s Market
b. Seller’s Market
c. Real Estate Market
d. Perfect Market
2. A situation wherein buyers are more than the sellers: B
a. Buyer’s Market
b. Seller’s Market
c. Real Estate Market
d. Perfect Market
3. When a loan is assumed by the buyer on a real estate transaction, ____________, B
a. The seller has no future obligations.
b. The buyer become liable for the debt.
c. The seller has no further obligations.
d. All of the above.
4. A mortgage that allows borrowing additional funds at a latter date. C
a. Chattel mortgage
b. Blanket mortgage
c. Open-end mortgage
d. Extensible mortgage
5. In general, the lien with first claim on the real estate is: D
a. Signed claims/liens
b. Largest amount
c. Pending in court
d. First recorded
6. ________ finding an off-market, undervalued properties for a fee: A
a. Bird dogging
b. Flipping
c. Investing
d. None of the above
7. A chattel mortgage involves ______________ property: C
a. Real
b. Real Estate
c. Personal
d. Housing
8. The period of time until loan maturity is called a: B
a. cycle
b. term
c. year
d. period
9. ____________ risk associated to unexpected changes in the overall investment D
environment.
a. Default
b. Inflation
c. Liquidity
d. Business
10. Recapture of the investment capital in real estate finance is that portion of the loan A
payment that is earmarked for:
a. Payoff of principal
b. Interest on money due
c. Interest and principal payment
d. None of the above
11. A type of economy where the government decides and drives the economy, focuses A
on what is needed rather than what is wanted.
a. Socialism
b. Mixed Socialism
c. Capitalism
d. Mixed Capitalism
12. Few buyers, multiple seller D
a. Monopoly
b. Monopsony
c. Oligopoly
d. Oligopsony
13. Single seller, multiple buyers A
a. Monopoly
b. Monopsony
c. Oligopoly
d. Oligopsony
14. A partnership between a landowner and a developer with an agreed sharing in B
profits:
a. Corporation
b. Joint Venture
c. Co-owernship
d. Realty Partnership
15. The maximum age limit for the maturity of payment of the loan from Pagibig C
financing for a housing unit is
a. 60 years old
b. 65 years old
c. 70 years old
d. 75 years old
16. The processing fee to be paid by a borrower of a Pagibig housing loan at the time of C
approval and take out of the loan is
a. P4,000
b. P3,000
c. P2,000
d. P1,000
17. What does PagIBIG stands for? C
a. Pagkakaisa sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno
b. Pagsasama sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno
c. Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno
d. Pagpapautang sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno
18. The loan to value ratio for affordable housing through PagIBIG fund up to P400,000 D
is
a. 70%
b. 80%
c. 90%
d. 100%
19. The Real Estate Investment Trust (REIT) Act of 2009 B
a. RA 9865
b. RA 9856
c. RA 9685
d. RA 9586
20. A REIT must have a minimum paid up capital of at least: B
a. P300,000.00
b. P300,000,000.00
c. P500,000,000.00
d. P500,000.00
21. The sale or transfer of real estate to REIT shall be subject to: C
a. 5% of the applicable DST
b. 25% of the applicable DST
c. 50% of the applicable DST
d. 90% of the applicable DST
22. Following are the four agents of production, except: B
a. Land
b. Demand
c. Capital
d. Entrepreneurship
23. Principles of value which states that the four factors of production must be in A
balance to attain highest value of property
a. Balance
b. Conformity
c. Contribution
d. Plottage
24. Maria Clara pays a monthly amortization of P100,000.00 for a parcel of land. The B
amortization factor for 3 years at 15% interest is 0.03467. If Maria Clara paid a
downpayment of 20% of the contract price, compute for the total contract price:
a. P2,884,338.04
b. P3,605,422.56
c. P721,084.51
d. P4,140,000.00
Solution:
P100,000 / 0.03467 = P2,884,338.04 (amount of loan)
P2,884,338.04 / 80% = P3,605,422.56 (contract price)
25. Ibarra bought a parcel of land with a total contract price of P10,535,000. He paid a A
downpayment of 35% and will amortize for 10 years at 25% rate. How much is the
monthly amortization? (MA factor 0.02275):
a. P155,786.31
b. P57,064.58
c. P168,830.13
d. P6,847,750.00
Solution:
P10,535,000 x 65% = P6,847,750 (amount of loan)
P6,847,750 x 0.02275 = P155,786.31 (monthly amortization)
