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