Exam 1: The Nature of Real Estate and Real Estate Markets

Competition for the currently available supply of locations and space coupled with the existing supply of leasable space,determines:

Helping to constrain entry into real estate related occupations,which of the following branches of government is directly involved in establishing rules and regulations for the licensing of professionals in the field of real estate?

Each property has unique features,whether it is its age,the building design of its structures,or its location.As such,real estate markets consist of assets that are considered:

If we desire to classify land by its use,land that does not include any improvements to the land would be categorized as:

The national government can have a significant impact on the value of real estate through:

Real estate is property,which can be either a tangible or an intangible asset.Which of the following would be considered an intangible asset?

As of 2011,the single largest asset category in the net worth portfolios of households is:

Real estate values derive from the interaction of three different sectors in the economy.Which of the following sectors serves to allocate financial resources among households and firms requiring funds?

When viewed as a tangible asset,real estate can be defined as the land and its permanent improvements.Improvements on the land include:

A primary determinant of the feasibility of new construction is the relationship between the current level of property prices and the cost of new construction.We would expect the supply of properties to:

The expected stream of rental income is capitalized into value by converting expected future cash flows into present value through a process called:

The required rate of return that an individual demands on a real estate investment is determined in the:

Capital markets can be divided into four main categories: private equity,public equity,private debt,and public debt.An example of a real estate asset that trades in the private equity market is:

The demand for real estate derives from the need that market participants (e.g. ,owner occupants,tenants,renters)have for shelter and convenient access to other locations.This competition for physical location and space occurs in the:

Consistently the investment target of pension funds,publicly traded real estate companies,and real estate funds,large commercial properties valued well over $10 million are often referred to as:

By the third quarter of 2011,U.S.households had accumulated $6.2 trillion in housing equity,which represents about 11 percent of their net worth.What proportion of U.S.households own their home?

Equity investors can choose to participate indirectly in real estate markets by purchasing shares in publicly traded real estate companies.In doing so,investors benefit from all of the following EXCEPT:

Primarily through land use controls and property tax policy,which of the following branches of government has the largest influence on real estate values?

Real estate markets tend to be highly segmented due to the heterogeneous nature of the products.Which of the following examples depicts this issue of market segmentation?

Capital markets can be divided into two broad categories: equity interests and debt interests.Equity investors in real estate expect to earn a return on their investment through: