<p> El Camino College Finance Quiz 1 2014 Rooks</p><p>1. Usury is: a. an interest payment in excess of the legally permitted rate. b. a form of personal property. c. a person who has a financial trust. d. an interest in real estate or real property.</p><p>2. A fiduciary is: a. a person who is a lawyer. b. a person who is a lender. c. a person who has a financial trust. d. none of the above.</p><p>3. A bond is a(n) a. tax lien. b. ownership document. c. form of usury. d. debt instrument.</p><p>4. The highest legal form of property ownership is: a. freehold estate. b. fee simple estate. c. leasehold estate. d. none of the above.</p><p>5. A payment of principal at the end of a series of smaller periodic mortgage payments that is typically much higher than the previous payments is called a(n): a. final payment b. balloon payment c. escalated payment d. tiered payment</p><p>6. An underwriter: a. makes loans based on assessment of risk. b. makes loans based on assessment of net worth. c. denies loans based on FICO scores. d. none of the above.</p><p>7. Often in times of war, a decree of the state will issue: a. wildcat loans. b. fiat money. c. pledge stocks. d. fiat bonds.</p><p>1 8. Prime rate refers to: a. the most popular rate. b. the best rate available with points purchased. c. the bank’s lowest rate. d. the bank’s highest rate.</p><p>9. The Truth in Lending Law requires: a. borrowers to be honest in their dealings. b. each lender to form a federal open market committee. c. lenders to give borrowers the lowest interest rate. d. lenders to inform borrowers of the total costs of obtaining a loan.</p><p>10. Personal property that is included with real estate is called: a. pawn. b. chattel. c. legacy. d. all of the above.</p><p>Real Estate Finance – 7th Edition Chapter 1 Quiz Answers © April 2009, Educational Textbook Company</p><p>1. a (p. 5) 2. c (p. 3) 3. d (p. 8) 4. b (p. 7) 5. b (p. 13) 6. a (p. 6) 7. b (p. 8) 8. c (p. 17) 9. d (p. 18) 10. b (p. 5)</p><p>2</p>