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Subject:BusinessPrice: Bought3
1. Home prices have generally climbed steadily over the years.2.
A passive activity is a business or trade in which you do not materially participate, such as rental activity.
3.
A limited partnership or a syndicate is formed by limited partners who assume unlimited financial liability.
_____4.
________
If you want to speculate in real estate investments, invest in participation certificates.
_____5.
.
Gold prices tend to fall by such factors as fear of war, political instability, and inflation.
MULTIPLE CHOICE
_____6.
Direct real estate investments include a. limited partnerships.
b. single family dwellings. c. syndicates.
d. REITs.
_____7.
Which type of REIT invests in properties?
a. Equity
b. Mortgage c. Hybrid
d. Preferred
_____8.
If you want a risk-proof real estate investment, invest in a. a vacation home.
b. your own home.
c. a participation certificate. d. commercial property.
_____9.
According to a federal law, REITs must distribute what percentage of their net annual earnings to shareholders?
a. 65 b. 75 c. 85 d. 90
_____
10.
Which one of the following is a disadvantage of investing in real estate?
a. Illiquidity
b. A hedge against inflation c. Financial leverage
d. Short depreciation period
