‘The essential oloments of appraisal reports: Usually follow the outlines of the appraisal process b. Vary according to the type of report ©. Are dependent upon the requirements of the client . None of the above ‘The type of appraisal report depends upon the emount of background information and detail required by the client. Which of the folowing types is the longest and most detailed? ‘a. Theletter report 'b, The form report .&. The narrative report d. The subdivision report There are three main subdivisions in the typical narrative appraisal report. Which of the following is not ‘one of these subdivisions? 2. Introduction b, Letter of transmittal ©. Description, analyses and conclusion d. Addenda The letter report usually _2, Contains only a brief description of the subject property '. Does not contain the assumptions, limiting conditions, and the appraiser's value certification ©. Is the most formal written report 4. Is required by institutions and agencies In the form report, its not usually necessary for the appraiser to: '. Demonstrate evidence of value through one or more approaches ». Describe any physical deterioration or functional inadequacy found in the structure ©. Rate the neighbourhood employment stability _d. Wie a letter of transmittal tothe olient ‘Which type of appraisal report requires a statement of the rights being appraised”? a. The letter report . The form report c. The narrative report d. Allofthe above Refers to the use of government budget to influence economic activity a. Fiscal policy b. Monetary policy c. Political wi 4. Police power Generally the process by which the central bank, or government controls the supply and availabilty of money, the cost of money, and the rate of interest. {Fiscal policy _b, Monetary policy & Budgeting ‘4. Economie policy ‘Anew mortgage that has one or more properties as security to the amount of loan, and the total amount of the loan isa combination ofthe new lean and one or mare existing loans. a. Blanket mortgage b. Closed mortgage ©. Wap around mortgage “4 Open mortgage10, "1 12, 8. 14, 6 6 1. 18 A securiy that sells ike a stock on the major exchanges and invests in real estate directly, either through properties or mortgages ‘a. Treasury bonds, . Corporate bonds ©. Hedge funds d. Real estate investment trusts The __ is a measure of all currently produced goods and services valued at market prices. 2, Gross Domestic Product (DP) Inflation rate © Unemployment rate 4. Interest rate Defined as the fraction of the labor force not working but actively seeking employment. ‘2, Gross Domestic Product (GOP) Inflation rate -£- Unemployment rate d. Interest rate Defined as the rate of change in the price level. ‘a. Gross Domestic Product (GDP) b. Inflation rate “G" Unemployment rate Interest rate ‘A security that sells like @ stock on the major exchanges and invests in real estate dectly. either through properties or mortgages. ‘a. Treasury bonds b. Comporate bonds c. Hedge funds -d_ Real estate investment trusts Which ofthe following credit rating agencies has given the Philippines, investment grade rating? ‘2, Standard & Poor (S&P) ». Fitch ©. Japan Credit Rating Agency 4. Moody's Allof the above 1. None ofthe above ‘The general term, value, means: The function of an object b. The average use and function of an object to all people &. The worth, usefulness, or uiility of an object to someone for some purpose. 4d. The highest price in terms of money that a property will ring with reasonable market exposure, ‘either buyer nor seller being under compuision to act ‘An appraisals: a. Afxing of value b. An estimate of value © Astatement of value d.Avalue determination ‘The two types of real estate appraisals are: a. Formal and informal Informal and intuitive © Structural and formal 4. None of the above19 20. 21 22. 23, 24 26. 21. ‘The criteria used in the selection of building materials include: a. Climate b. Availablity fe. Durability 4. Allofthe above Good architectural design consists in part, of: ‘a. Aunique floor plan b, Functional utility “C. Using expensive materials 4d. Allofthe above To improve the reliability of information about comparable sales, you may want to consider, as an additional step: a. Having a partner or assistant go over your work . Applying the statistical technique called sampling _e, Checking your data through another source d. All ofthe above ‘A rent multiplier is an economic unit of comparison because: ‘a. It measures the square meter ofthe rental property . It compares the present income of the property against the past income of the property as a percentage _c.-It relates to the income of the property ‘d. Allofthe above Converting an estimate of income into an estimate of value by use of rate ‘& Discount rate b. Value estimate Capitalization “ad Income estimate A yield rate used to convert future payments or receipts to present valve \@, Discount rate . Capitalization rato © Overall rate Split rate ‘To artive at net operating income, expenses are deducted from a. Effective gross income “D” Operating profit & Gross income None of these is the estimated value of a property that is the object of expropriation for putile Use, Just compensation isthe fair and full equivalent, in money, for the loss sustained a. Scrap value b. Liquidation value Condemnation value Market value Js the value of land and/or improvements for ad valorem tax purposes. 2 Market value _b_ Assessed value ‘e. Condemnation value 4d. Liquidation value2. 28. 30. 31 22 33, 35. Economie principle which states that real property value is created and sustained viten the characteristics of a property conform to the demands of its market ‘a. Principle of anticipation . Principle of substitution & Principle of conformity “. Principle of contribution Economic principle which holds thatthe value of @ component isa function ofits contibution tothe ‘whole rather than as a separate component Principle of balance “8. Principle of substiution €. Principle of conformity _d-Principe of contibution Economic principle which holds that as capital units are added, a certain points reached where the ‘added units do not contribute value commensurate with their costs. _a. Principle of increasing and decreasing returns. b. Principle of externalities c. Principle of supply and demand 4. Principle of surplus productivity Economic principle which states that the net income that remains after the costs of various agents of production have been paid ‘2 Principle of increasing and decreasing returns . Principle of externaltios ©. Principle of supply and demand d.-Piinciple of surplus productivity Economic principle which states that when several similar goods or services are available, the one with the lowest price attracts the greatest demand. ‘a. Principle of change _b, Principle of substitution Principle of conformity 4. Principle of contribution Economic principle which states that economies outside @ property have positive effects on its value, ‘hile diseconomias have a negative effect on value externalities such as the neighbourhood have an effect on value. : 2. Principle of increasing and decreasing returns _b- Principle of externalities ‘©. Principle of supply and demand 4. Principe of surplus productivity Economic principle which is the perception that value is created by the expectation of benefits to be derived in the future, |. Principle of anticipation ’b. Principle of substitution ©. Principle of conformity 4. Principle of contribution Economic principle holds that value is achieved and maintained when ail elements are in proper proportion. _a. Principle of balance 'b. Principle of substitution ©. Principle of conformity d. Principe of contributon