The owner of this kind of investment holds the legal title to the property he or she has purchased. (what are some examples?)
Direct investment (single-family homes, duplexes, vacation property, land, commercial property)
100
Owning a home produces an average rate of return AFTER inflation of approximately 2-3%. This is the roughly the same rate of return as what other type of investment?
A bond
100
Name two of the five precious metals discussed during class
An investment in a group of mortgages that have been purchased by a government agency (and what are the four agencies).
Participation certificate (Ginnie Mae, Freddie Mac, Fannie Mae and Sallie Mae)
200
Most people that invest in precious metals do so for this reason
To hedge (protect) against inflation
200
The world's largest diamond mine was found in 1905 in which country
South Africa
200
What is Mrs. Zastrow's favorite thing to collect
Books
300
A temporary association of individuals or business firms organized to invest in real estate that requires a large amount of funds
Syndicate
300
This is a main advantage of investing in a real estate syndicate.
Diversification
300
In January 2005, this precious metal was the most valuable per ounce (selling for $1,300/ounce)
Rhodium (as of 5/6/14 it was Platinum at $1,458/ounce)
300
Where will you find the Hope Diamond
At the Smithsonian Natural History Museum in Washington D.C.
300
What kind of collection did Ned's uncle find in an storage unit auction
A collection of Nikes
400
If the economy declines, the value of your real estate investment or property may....
decrease
400
Name 3 of the 5 disadvantages of real estate investments
Illiquidity, declining property values, lack of diversification, lack of tax shelter, management problems
400
There are three factors that generally increase the value of precious metals. Name one.
Threats of war, political unrest, or rising inflation
400
Name two of the four primary reasons people invest in precious gems
Small size, ease of storage, great durability, potential to protect against inflation
400
Name a disadvantage of adding to a collection through purchasing items on the Internet (i.e. eBay)
The items may not be authentic (fraud), prices may be higher, you can not exam flaws or trademarks closely
500
Name two of the four advantages of real estate investments
Hedge against inflation, easy entry, limited financial liability, and finance leverage
500
Real estate syndicates, limited partnerships, real estate investment trusts (REITs), high-risk mortgages, and participation certificates are all examples of this kind of investment.
Indirect investment
500
As of January 2005, one ounce of this metal was worth approximately $425
Gold (as of 5/6/14 it was worth $1,307 an ounce)
500
Name ALL FOUR C's of precious gem ratings
Color, Cut, Clarity, Carat
500
Name an advantage of using the Internet for adding items to a collection