Business and Personal Finance © 2007

Chapter 11: Real Estate and Other Investments

Practice Tests

1
A(n) _______ is a real estate investment in which the owner holds legal title to the property he or she has purchased.
A)indrect investment
B)commercial property
C)direct investment
D)syndicate
2
Land and buildings that produce rental income are called _______.
A)syndicates
B)direct investments
C)limited partnerships
D)commercial property
3
Since the 1980s, _______ have been less appealing to investors because the Tax Reform Act limited tax advantages.
A)real estate syndicates
B)participation certificates
C)collectibles
D)precious gems
4
Participation certificates are issued by _______.
A)real estate syndicates
B)partnerships
C)government agencies
D)fund managers
5
A disadvantage of investing in real estate is _______.
A)lack of diversification
B)increasing property values
C)hedge against inflation
D)easy entry
6
Rough mineral deposits (usually crystals) that are dug from the earth by miners and then cut and shaped into brilliant jewels are called _______.
A)precious metals
B)precious gems
C)collectibles
D)gold
7
Valuable ores, such as gold, platinum, and silver, are called _______.
A)precious gems
B)precious metals
C)diamonds, sapphires, and emeralds
D)collectibles
8
_______ are rated for color, clarity, and weight.
A)baseball cards
B)precious metals
C)precious gems
D)works of art
9
The use of borrowed funds for direct investment purposes is _______.
A)financial leverage
B)hedge against inflation
C)diversification
D)liquidity
10
In January 2005, an ounce of gold was worth about _______.
A)$125
B)$225
C)$325
D)$425
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