8. When computing the interest rate on a mortgage, we use the nominal rate because _______. (a) the use of a real rate w

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8. When computing the interest rate on a mortgage, we use thenominal rate because _______.
(a) the use of a real rate would improperly include inflationexpectations.
(b) use of a real rate would bias the computations in favor ofapplicants paid in cash.
(c) use of an after-tax rate would bias the computations infavor of high-income applicants
(d) federal and state disclosures mandate its use for thispurpose.
(e) all of the above
(f) none of the above
9. Truth-in-Lending disclosures are required on 1-4 family hometransactions ______.
(a) only on purchases but not on refinances
(b) only when a mortgage is involved
(c) only when a service provider such as a lawyer or appraiseris a related party to the lender
(d) only when the mortgage amount exceeds $100,000
(e) all of the above
(f) none of the above
10. The major risks in buying and holding for investment adistressed property is __________
(a) the inability to determine all physical deficiencies untiltitle has passed and walls are opened
(b) the inability to rent until building deficiencies have beencured and a Certificate of Occupancy issued
(c) uncertainty about the ability to identify qualitytenants
(d) uncertainty about the ability to identify lenders who willlend on market value rather than sunk costs
(e) the potential profit margin is inversely related to thedesirability of the neighborhood
(f) all of the above