1 	Government regulation of foreign investments in the United States' real estate market is: 		   
	 a. strict and laden with numerous regulations.		   
 	 b. non-restrictive and safeguards foreign investments.		   
 	 c. based on the current conditions of the real estate market.		   
 	 d. dependent upon current world market conditions.		   
 	 		   
			 
  
2 	What takes place during the peak phase of a real estate cycle? 		   
	 a. Supply supersedes demand		   
 	 b. Demand supersedes supply		   
 	 c. Participants are uncertain of a peak		   
 	 d. Both (a) and (c)		   
 	 		   
			 
  
3 	Yearly changes in business and economic activity that can affect the real estate market are: 		   
	 a. business cycles.		   
 	 b. long-term fluctuations.		   
 	 c. short-term fluctuations.		   
 	 d. economic cycles.		   
 	 		   
			 
  
4 	Which of the following does not occur within a normal business cycle? 		   
	 a. Recovery		   
 	 b. Expansion 		   
 	 c. Contraction		   
 	 d. Modification		   
 	 		   
			 
  
5 	As far as economic systems are concerned, what distinguishes a command system from a market system? 		   
	 a. Allocation decisions are centralized in a market system.		   
 	 b. Allocation decisions are centralized in a command system.		   
 	 c. Allocation decisions rely on buyers and sellers in a command system.		   
 	 d. Allocation decisions depend on real estate agents in a market system.		   
 	 		   
			 
  
6 	What is the ultimate effect of foreign ownership of real estate in the United States? 		   
	 a. It is difficult to estimate.		   
 	 b. Real estate prices will continue to fall if foreign investment increases.		   
 	 c. Increased amount of prospective buyers such as foreign investors will increase real estate prices.		   
 	 d. Both (a) and (c)		   
 	 		   
			 
  
7 	Unlike stocks and bonds, real estate is __________, meaning it cannot be converted to cash quickly. 		   
	 a. immobile		   
 	 b. regulated by the government		   
 	 c. irrelevant		   
 	 d. illiquid		   
 	 		   
			 
  
8 	The characteristics of the expansion stage in a real estate market include: 		   
	 a. economic recession.		   
 	 b. high unemployment.		   
 	 c. speculators and increased accessibility to credit.		   
 	 d. increased defaults and foreclosures.		   
 	 		   
			 
  
9 	In a business cycle, what usually occurs after rapid expansion? 		   
	 a. Stability		   
 	 b. Recovery		   
 	 c. Contraction		   
 	 d. Expansion		   
 	 		   
			 
  
10 	Which of the following is not a characteristic of a real estate market? 		   
	 a. Unique product		   
 	 b. Limited number of buyers and sellers		   
 	 c. High mobility of product		   
 	 d. Local and segmented market