Section 4, Unit 2: Other Institutional Sources of Funds

There are three types of international buyers: those who have work visas and are looking for a home to purchase while they're in the U.S., those who are looking for a vacation home in the U.S., and those who are looking for ______.

A luxury home to purchase as an investment

Which of the following describes mutual savings bank loans?

Banks focus lending offerings on local businesses and residents.

In which U.S. market(s) do foreign lenders participate?

Both the primary and secondary mortgage markets

Secured corporate bonds use ______ as collateral.

Corporate assets

Memoryjet, Inc has developed a new technology for high-volume jump drives. In order to manufacture their new devices they will need to gear up a new production line, which will cost about $85 million. What kind of bond instrument could they use to help secure the funds they need for their new line?

Corporate bond

Which type of real estate investment trust is designed to deal exclusively in equities?

Equity REIT

Mike has had some financial problems and is considering borrowing from his retirement plan. Which of the following is a true statement?

He should consult with a financial expert before doing so.

Kathy decided to borrow funds from her retirement account to fund the down payment on her new house. Which of the following is true about this loan?

If Kathy's loan is through an employer-sponsored pension plan and she loses her job, the loan will become payable immediately.

Which of the following best describes an equity real estate investment trust?

Invests in equity by owning income-producing property, such as malls, apartments, or office parks

What did a 2019 National Association of REALTORS® study say about foreign investment in U.S. real estate?

It's less stable than in previous years.

Which of the following REITs focuses on lending money for mortgages and investing in mortgage-backed securities?

Mortgage REIT

Which type of real estate investment trust derives a portion of its income from interest dividends?

Mortgage REIT

Which type of real estate investment trust involves both residential and commercial properties?

Mortgage REIT

A local town has been growing and needs a new elementary school. What kind of bond instrument will the town use to finance this project?

Municipal bond

Janice is planning to borrow money from her retirement savings. Which of the following is a true statement about her situation?

She should consult with a financial expert before withdrawing the funds.

After bonds are ______, their value goes up and down with the market.

Sold