Q. Which real estate investment vehicle is typically chosen for public market investors?

1. Real estate equity funds
2. Real estate investment trusts
3. Real estate limited partnerships

Q. A country that increases its international trade would most likely see a decrease in:

1. prices of domestic goods and services.
2. quality of domestic goods and services.
3. demand for domestic goods and services.

Q. The key difference between a broker and a dealer is that:

1. dealers act as principals.
2. brokers act as market makers.
3. brokers trade directly with other market participants.

1. produce a portfolio that will include other securities besides those in the index.

Q. Purchase of a hotel property would most likely take place in:

1. brokered markets.
2. order-driven markets.
3. quote-driven markets.

Q. The market for a liquid stock is quoted at 25 bid, 26 offered. An order to sell is most likely to execute if the order submitted is:

1. sell limit 25.
2. sell limit 25.5.
3. sell limit 26.

Q. After issue, floating-rate bond coupons are affected by the:

1. credit spread.
2. reference rate.
3. conversion provision.

Q. The distinctive characteristic of enterprise risk management (ERM) is the:

1. independence of the risk management function.
2. support given to strategic and business planning.
3. consolidation and management of risks at the firm level.

Q. A downgrade of a bond reflects an increase in its:

1. credit risk.
2. liquidity risk.
3. interest rate risk.

Q. The expansion phase of the business cycle can be characterised by:

1. corporations declining stock values.
2. consumers reducing outstanding debt.
3. employees demanding higher wages.