1. The Federal Reserve System normally affects the supply of money in the economy by all of the following except adjusting the discount rate buying and selling bonds buying or selling gold on the international market changing reserve requirements 2. To take ownership in severalty, one must be purchasing as the sole owner purchasing the property with a spouse purchasing an apartment complex purchasing more than one parcel 3. A California landowner wants to subdivide his property. What is the minimum number of lots he would have to create in order to subject the subdivision to the Subdivided Lands Law? 5 lots 10 lots 3 lots All subdivision of parcels of land is subject to the Subdivided Lands Law regardless of the number of lots created 4. Real estate brokerages in California can take the form of a sole proprietorship, partnership or corporation. One of the advantages of operating as a partnership is that each partner has the use of the assets of the other partners there is less responsibility and more time can be spent away from the business the personal assets of a partner cannot be touched by creditors of the business management of the business can be left to the other partners with little concern or care 5. The easiest and most accurate way for an appraiser to calculate the estimated current market value of a residential property is by the replacement value approach cost approach income approach sales comparison approach 6. For which of the following properties would an appraiser be justified in relying on the cost method to determine market value? A newly constructed church of contemporary design A vacant lot which possesses latent value A farm located just outside of town A 40 year old California ranch which represents the highest and best use 7. If there is a conflict between the terms of the purchase and sale agreement and the escrow instructions, the escrow agent must contact the broker to clarify the discrepancy. delay the closing until the issue is resolved between the parties. comply with the terms of the escrow instructions. comply with the terms of the purchase and sale agreement. 8. Under the provisions of the Real Estate Settlement Procedures Act, which is NOT a violation? The buyer choosing a lender Kickbacks The seller designating title insurance company Unearned fees 9. Under the Truth-in-Lending Law, the three-day right of rescission begins the first business day after loan application the third day after the disclosure statement is delivered the day the note is signed the date the funds are disbursed 10. Special assessments differ from real property taxes in that a special assessment is levied against only those properties that benefit from the improvement a special assessment is a one-time tax levied only when a property is benefited by a public improvement a special assessment is levied to pay for a specific improvement all of the above 11. Which of the following transactions require a Real Estate Transfer Disclosure? Transfer of 1-4 residential units in bankruptcy Sales transaction of 1-4 residential units Foreclosure of 1-4 residential units All of the above