1. A market where tenants negotiate rent and other terms with property owners or their managers is referred to as a: a. Property market. b. User market. c. Housing market. d. Capital market.

2. The market in which required rates of return on available investment opportunities are determined is referred to as the: a. Property market. b. User market. c. Housing market. d. Capital market.

3. The actions of local, state, and federal governments affect real estate values: a. Primarily through user markets. b. Primarily through the capital market. c. Primarily through their taxation policies. d. Through all of the above.

4. What portion of households owns their house? a. Approximately one-third. b. Approximately two-thirds. c. Approximately one-half. d. Approximately one-quarter.

5. Of the following asset categories, which has the greatest aggregate market value? a. Corporate equities. b. Mortgage debt. c. Government debt. d. Nongovernment real estate.

6. Storm water drainage systems are best described as: a. Tangible assets. b. Improvements to the land. c. Intangible assets. d. Improvements on the land.

7. Among the following four categories, which is the largest asset category in the portfolio of the average U.S. household? a. Housing. b. Stocks. c. Deposits and money market funds. d. Government and corporate bonds.

8. Real estate markets differ from other asset classes by having all of the following characteristics except: a. Local market. b. High transaction costs. c. Segmented market. d. Homogeneous product.

9. Which of the following is not important to the location of most commercial properties? a. Access to customers. b. Visibility. c. Access to schools. d. Availability of communications infrastructure.

10. Which of the following attributes of a home are the most difficult to observe and value? a. Land/site attributes. b. Structural attributes. c. Location attributes. d. Financing attributes.