Please I hope this time the tutor will get everything right! Last time only 40% was right...Thanks!

1. Capped Adjustable Rate Mortgages normally limit interest rate increases in the monthly payment but not loan balances calculations when negative amortization is permitted:

a. Trueb. False

______2. A cap of 2-5 with an Adjustable Rate Mortgage means:

a. The rate can change by 3 percent per year

b. The loan balance will increase by 3 percent overall

c. The monthly payment can increase by a maximum amount of 2 percent per year but not more than 5 percent overall

d. The monthly payment can increase by a maximum amount of 5 percent per year but the loan balance must increase by 2 percent every year the loan is outstanding

_____3. A free to float loan has no cap provisions. Negative amortization is still a possibility.

a. Trueb. False

_____4. The term External depreciation refers to the following situation:

a. Normal wear and tear of the structure (building)

b. The need to install windows and an upgraded electrical system

c. A flat roof on a building

d. Problems associated with the property's location

_____5. Non-Repairable Physical Depreciation refers to:

a. Structural obsolesce that takes place over time

b. Carpeting, Paint and Use damage that occurs to a property

c. The interior layout of the property

d. All of the above

_____6. The Site Value when doing a Replacement Decision problem is calculated using:

a. The original cost of the land

b. The historical cost of land in the area per square foot

c. The market value of the land per square or front foot

_____7. The Replacement Decision method is used to appraise ________ properties.

a. Income

b. Comparable sales of other

c. Market Value of comparable

d. Special Use

_____8. The vacancy and collection loss rates (V&C) for a given neighborhood should be approximately the same.

a. Trueb. False

_____9. The term GIM or Gross Income Multiplier is a ______ income multiple.

a. Monthly

b Semi-annual

c. Quarterly

d. Annual

_____10. The Gross Income/ Gross Rental model is consider a:

a. Replacement Decision method

b. Market or Sales method

c. Depreciated Cost method

d. Multi-Neighborhood method