RUE-FALSE

1.

Home prices havegenerallyclimbedsteadilyovertheyears.

2.

Apassive activityis abusiness ortradeinwhichyou do notmateriallyparticipate,such asrentalactivity.

3.

Alimited partnership orasyndicateisformed bylimited partners who assume unlimitedfinancialliability.

_____4.

________

Ifyouwantto speculateinrealestateinvestments,investin participation certificates.

_____5.

.

Gold pricestendtofallbysuchfactorsasfearofwar, politicalinstability, andinflation.

MULTIPLECHOICE

_____6.

Directrealestateinvestmentsinclude a.limited partnerships.

b.singlefamilydwellings. c.syndicates.

d.REITs.

_____7.

Whichtype ofREITinvestsin properties?

a.Equity

b.Mortgage c.Hybrid

d.Preferred

_____8.

Ifyouwantarisk-proofrealestateinvestment,investin a.avacation home.

b.yourown home.

c.a participation certificate. d.commercialproperty.

_____9.

Accordingto afederallaw,REITsmustdistribute whatpercentage oftheirnetannual earningsto shareholders?

a.65 b.75 c.85 d.90

_____

10.

Which oneofthefollowingis adisadvantage ofinvestinginrealestate?

a.Illiquidity

b.Ahedge againstinflation c.Financialleverage

d.Shortdepreciation period