CH 11
In the year 2003, an ounce of gold was worth about
$360
An advantage of using the Internet for adding to a collection is
Access to sellers from around the world
An apartment building is considered
Commercial property
Land or buildings that produce lease income
Commercial property
A real estate investment in which the owner holds legal title to a property he or she has purchased
Direct investment
The use of borrowed funds for investment purposes
Financial Leverage
An agency that sells participation certificates
Ginnie Mae
Participation certificates are issued by
Government agencies
What is the largest financial asset for most Americans?
Home ownership
An investment where a trustee is appointed to hold legal title to a property on behalf of an investor or group of investors
Indirect investment
Which kind of investment offers the least diversification?
Land purchases
Precious gems are rated for all the following characteristics EXCEPT
Origin
An investment in a group of mortgages that have been purchased by a government agency
Participation certrificates
Rough mineral deposits that are dug from the earth and shaped into brilliant jewels
Precious gems
Which of the following is an indirect investment?
Purchasing a debt contract
An investment that works like a mutual fund but invests in real estate or mortgage loans
REIT
A lesser-known precious metal
Rhodium
An association of investors organized as a corporation, trust, or limited partnership
Syndicate
Since the 1980s, real estate syndicates have been less appealing to investors because
The Tax Reform Act limited tax advantages
The value of a real estate investment may decrease if
The economy declines