Real Estate License Exam Prep — Module 7 Quiz
Finance & Valuation

Q1. A buyer pays 20% down on a $400,000 home. The loan-to-value ratio (LTV) is:
A) 20%
B) 80%
C) 100%
D) 120%
ANSWER: B

Q2. Private mortgage insurance (PMI) protects:
A) The borrower's equity.
B) The lender against default.
C) The appraiser.
D) The title company.
ANSWER: B

Q3. Value = NOI divided by cap rate is the basis of which approach?
A) Sales comparison
B) Cost approach
C) Income approach
D) GRM only
ANSWER: C

Q4. Which loan program offers zero-down financing for eligible veterans?
A) FHA
B) VA
C) USDA
D) Conventional jumbo
ANSWER: B

Q5. An acre equals:
A) 43,560 square feet.
B) 43,560 square yards.
C) 6,400 square feet.
D) 640 square feet.
ANSWER: A