Instruction: Select the best answer. Write only the letter that corresponds to your answer.

Part 3. Professional Practice (Urban and Land Use) January 23, 2024

1. A movement in the supply of real estate housing versus the actual effective demand would
affect the:
A. Price
B. Production cost
C. Purchasing power
D. Fair market value

2. An important and main determinant in the demand for housing is:

A. Interest rate
B. Type of housing
C. Supply of materials
D. Demographics

3. It refers to the effect that is made by one aspect of the economy with the other economic
activities in the country.
A. Ripple effect
B. Economic effect
C. Multiplier effect
D. Greenhouse effect

4. A buyer will loan from the bank for the purchase of a house. The amount of difference
between what the total price will be and the amount he can borrow is referred to as:
A. Downpayment
B. Equity
C. Loan balance
D. Reservation deposit

5. A contract where the creditor acquires the title to receive the fruits of a property from the
borrower to be applied to the payment of interest and thereafter to the principal amount.
A. Loan
B. Pledge
C. Usufruct
D. Antichresis

6. In a subdivision, there were numerous lots being sold by owners but only few buyers were
buying. This is referred to:
A. Seller’s market
B. Buyer’s market
C. Open market
D. Down market
7. In computing the amortization factor on the financing of real estate sales, the factor will be
based on:
A. Interest rate
B. Number of years to pay
C. Interest rate and term of payment
D. Financial capacity of the buyer

8. Mr. and Mrs. Akino wanted to loan under Pagibig Financing to buy a residential lot. They
can purchase a maximum of:
A. 1,000 square meters
B. 1,500 square meters
C. 2,000 square meters
D. 3,000 square meters

9. An additional requirement in obtaining a loan which is to pay off the loan or outstanding
obligation upon the death of the borrower.
A. Housing finance insurance
B. Mortgage redemption insurance
C. Loan assurance agreement
D. Housing loan redemption insurance

10. Pag-IBIG is an acronym which stands for:

A. Pagtutulungan sa Kaunlaran: Industriya, Bangko, Ikaw at Gobyerno.
B. Pagtutulungan sa Kabuhayan: Ikaw, Bangko, Industriya at Gobyerno.
C. Pagtutulungan sa Kahirapan: Industriya, Bangko, Ikaw at Gobyerno.
D. Pagtutulungan sa Kinabukasan: Ikaw, Bangko, Industriya at Gobyerno.

11. A payment scheme where the buyer of the condominium unit pays the total price within a
short period of time without interest.
A. Short term financing
B. Deferred financing scheme
C. Deferred cash payment
D. Discounted cash payment

12. It is the assurance given by the bank to the seller that he/she will be paid by the bank for the
approved buyer’s loan under certain conditions.
A. Letter of credit
B. Letter of guaranty
C. Letter of assurance
D. Letter of approved loan assurance
13. The growth of the Philippine economy was reflected in the GDP which means
A. Gross domestic product
B. Gross development product
C. Gross domestic production
D. Gross demand percentage

14. It refers to the change in interest rates on agreed interval periods of the loan between the
lender and the borrower.
A. Inflation
B. Escalation
C. Restructuring
D. Repricing

15. The maximum number of Pagibig members that may be tacked into a single loan is:
A. One (1)
B. Two (2)
C. Three (3)
D. Four (4)

16. In a real estate mortgage, it refers to the person or entity which lends money to the borrower
for a housing loan.
A. Mortgagor
B. Mortgagee
C. Financier
D. Lener

17. A residential subdivision was much in demand but there were only few lots being sold but a
lot of buyers were interested to buy. This is referred to as:
A. Real estate market
B. Buyer’s market
C. Seller’s market
D. High demand market

18. A market structure characterized by a single seller, selling a unique product in the market. In
this market, the seller faces no competition, as he is the sole seller of goods with no close
substitute.
A. Monopoly
B. Oligopoly
C. Duopoly
D. Monopsony

19. Even if a thing has utility, it will not have value if it is overabundant.
A. Abundancy
B. Scarcity
C. Demand
D. Supply
20. Ferdie was paying a monthly amortization of P54,100.00 at 21% per annum. How much is
being financed if the amortization factor is 0.02705?
A. P1,000,000.00
B. P1,500,000.00
C. P1,800,000.00
D. P2,000,000.00

21. By definition, it is equal to price times quantity.

A. Total sales
B. Total revenue
C. Total income
D. Total profit

22. It refers to the total quantity of goods and services that the nations businesses willingly
produce and sell in the given period.
A. Investment
B. Consumption
C. Aggregate supply
D. Total demand

23. It is a type of financing availed of by a borrower in the meantime in the event his or her long
term loan is not yet approved for the purchase of a house in order to secure the purchase
thereof.
A. Promissory note
B. Escrow agreement
C. Standby financing
D. Bridge financing

24. A borrower through Pagibig Fund may purchase a residential lot and obtain loan up to the
age of:
A. 65 years old
B. 60 years old
C. 70 years old
D. 55 years old

25. A financing scheme provided by developers of projects to its buyers in lieu of direct bank
financing.
A. Internal financing
B. In-house financing
C. Developer’s financing
D. Non-bank financing
26. In a sale of installment of realty, after paying 5 years installments, the buyer will make a
lump sum payment at the end which is referred to as:
A. Last payment
B. Full payment
C. Final payment
D. Balloon payment

27. Which occurs because a good becomes relatively more expensive when its price rises?
A. Substitution effect
B. Multiplier effect
C. Income effect
D. Market demand

28. It is used as an instrument to help finance and develop infrastructure projects.

A. Economic market
B. Capital market
C. Real estate market
D. Infused market

29. The market life cycle are as follows:

A. Growth, Declination, Stability, Revitalization
B. Declination, Revitalization, Declination, Growth
C. Stability, Revitalization, Growth, Declination
D. Growth, Stability, Declination, Revitalization

30. Pag-ibig loan charges and deductions processing fee.

A. P1,000.00
B. P2,000.00
C. P3,000.00
D. P4,000.00