8. When computing the interest rate on a mortgage, we use the nominal rate because (a) the use of a real rate would improperly include inflation expectations. (b) use of a real rate would bias the computations in favor of applicants paid in cash (c) use of an after-tax rate would bias the computations in favor of high-income applicants (d) federal and state disclosures mandate its use for this purpose. (e) all of the above (f) none of the above 9. Truth-in-Lending disclosures are required on 1-4 family home transactions (a) only on purchases but not on refinances (b) only when a mortgage is involved (c) only when a service provider such as a lawyer or appraiser is a related party to the lender (d) only when the mortgage amount exceeds $100,000 (e) all of the above (f) none of the above 10. The major risks in buying and holding for investment a distressed property is (a) the inability to determine all physical deficiencies until title has passed and walls are opened (b) the ability to rent until building deficiencies have been cured and a Certificate of Occupancy issued (c) uncertainty about the ability to identify quality tenants (d) uncertainty about the ability to identify lenders who will lend on market value rather than sunk costs (e) the potential profit margin is inversely related to the desirability of the neighborhood (f) all of the above