California Real Estate Practice Exam

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Prepare for the California Real Estate Exam. Study with flashcards and multiple-choice questions, each question includes hints and explanations. Get ready to ace your exam!

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Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

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Who can benefit from secondary mortgage markets?

  1. Lenders and investors

  2. Only new home buyers

  3. Only the federal government

  4. Only banks

The correct answer is: Lenders and investors

Lenders and investors can benefit from secondary mortgage markets because it allows them to sell the mortgages they own, freeing up capital for them to use to make more loans. This also allows them to reduce their risk by diversifying their portfolio. Option B is incorrect because new home buyers do not directly benefit from secondary mortgage markets. Option C is incorrect because although the federal government may play a role in regulating or providing support for secondary markets, they do not directly benefit from them. Option D is incorrect because banks can both sell and purchase mortgages in secondary markets, so they can benefit from them as well.

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