1. Which of the following situations may result in the discharge of a contact?

a. Performance b. Partial Performance, if agreeable to both parties c. Mutual Agreement of both parties d. Cancellation or Termination of the contract e. All of the above

2. A Deed of Trust transfers title from the trustor to a trustee, who holds it on behalf of a beneficiary. In this situation, the beneficiary is:

a. the borrower b. the seller c. the lender d. the lenders proxy or representative e. the insurer

3. The true cost of home ownership includes all of the following EXCEPT:

a. the property taxes b. the payment of principal and interest c. the cost of property insurance d. the cost to install a swimming pool after purchase e. the cost of utilities

4. One tool that the Federal Reserve System (the Fed) uses to regulate the flow of money and interest rates in the marketplace is by controlling the rate charged for loans it makes to its member banks. This rate is called the:

a. Prime Rate b. Discount Rate c. Libor Rate d. Principal Rate e. Index Rate

5. The Real Estate Settlement Procedures Act (RESPA) regulations apply to a first-lien residential mortgage loan. The regulations do not apply to which of the following?

a. A Condominium purchase b. Loans for Business or Agricultural purposes c. Loans for large properties (typically more than 25 acres) d. Construction loans or other temporary financing e. b, c and d