Personal Finance Study Set 5

Business

Quiz 17 :
Investing in Real Estate and Other Investment Alternatives

Quiz 17 :
Investing in Real Estate and Other Investment Alternatives

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In a direct real estate investment,the investor holds legal title to the property.
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True False
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Answer:

True

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With an indirect real estate investment,the investors appoint a trustee to hold legal title on behalf of all the investors in the group.
Free
True False
Answer:

Answer:

True

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Limited partnerships and syndicates are examples of direct real estate investment.
Free
True False
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Answer:

False

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People primarily buy a vacation home for tax reasons according to one certified public accountant.
True False
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A real estate syndicate provides professional management and unlimited liability for its members.
True False
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Land purchased with the intent of subdividing it is speculative,because it involves many risks.
True False
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Indirect real estate investments include investing in real estate syndicates,REITs,and participation certificates.
True False
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Ginnie Maes are backed by the full faith and credit of the Federal Government.
True False
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A passive activity is a business or trade in which you do not materially participate.
True False
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Passive loss is the total amount of losses from a passive activity minus the total income from the passive activity.
True False
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Many investors buy land with the intention of subdividing it.
True False
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Real estate investment trusts are government-owned real estate companies.
True False
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A syndicate is a temporary association of individuals or firms organized to perform a specific task that requires a large amount of capital.
True False
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Real Estate Investment Trusts are required by federal law to have at least 500 shareholders.
True False
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Real Estate Investment Trusts must distribute at least 90 percent of their taxable annual earnings to shareholders.
True False
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The limited partnership is formed by a limited partner,who has unlimited liability for its debts.
True False
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A REIT is similar to a mutual fund or an investment company,and it trades on stock exchanges or over-the-counter.
True False
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There are three types of REITs: equity REITs,mortgage REITs,and hybrid REITs.
True False
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Federal law requires that no more than half the shares in a REIT may be owned by 15 or fewer people.
True False
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A participation certificate is an equity investment in a pool of mortgages or student loans that have been purchased by one of several government agencies.
True False
Answer:
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