#1
What is a Real Estate Investment Trust (REIT)?
A type of mutual fund
A company that owns, operates, or finances income-producing real estate
A government agency regulating real estate transactions
A form of mortgage-backed security
#2
How are REITs typically taxed?
Taxed at the corporate level only
Taxed at both the corporate and individual investor level
Taxed only at the individual investor level
Taxed at the capital gains rate
#3
What is the term used to describe the share of profits that a REIT shareholder receives?
Dividend
Interest
Royalty
Capital gain
#4
Which of the following is NOT a common sector in which REITs invest?
Residential
Retail
Technology
Industrial
#5
Which of the following is NOT a factor that may affect the performance of a REIT?
Economic conditions
Interest rates
Government regulations
Consumer spending habits
#6
Which of the following is NOT a requirement for a company to qualify as a REIT?
Invest at least 75% of its total assets in real estate
Derive at least 75% of its gross income from rents from real property
Pay out at least 90% of its taxable income to shareholders as dividends
Have at least 500 shareholders
#7
What is the primary benefit of investing in a REIT for individual investors?
High liquidity
Diversification
Tax advantages
Guaranteed returns
#8
What is the minimum percentage of taxable income that a REIT must distribute to shareholders to qualify for special tax treatment?
#9
Which of the following is NOT a type of REIT?
Equity REIT
Mortgage REIT
Hybrid REIT
Derivative REIT
#10
Which financial metric is commonly used to evaluate the performance of REITs?
Price-to-earnings ratio (P/E ratio)
Return on investment (ROI)
Earnings per share (EPS)
Funds from operations (FFO)
#11
Which of the following is a characteristic of a publicly traded REIT?
Limited liquidity
Restricted access to capital markets
Traded on stock exchanges
Lower regulatory oversight
#12
Which of the following is a potential risk associated with investing in REITs?
High volatility
Lack of transparency
Tax disadvantages
Limited diversification
#13
What is the main advantage of a mortgage REIT (mREIT) compared to other types of REITs?
Higher dividend yield
Lower risk
Tax-exempt status
Potential for capital appreciation
#14
What is the term used to describe the process of converting a non-REIT company into a REIT?
REITification
Conversion
REIT transition
Real estate conversion
#15
Which of the following is a potential drawback of investing in REITs during periods of rising interest rates?
Increased dividend yields
Decreased borrowing costs
Lower property values
Higher demand for real estate
#16
Which of the following is a potential advantage of investing in REITs compared to owning physical real estate?
Greater control over property management
Higher potential returns
Lack of liquidity
Lower transaction costs
#17
Which of the following is a potential disadvantage of investing in a non-traded REIT compared to a publicly traded REIT?
Lower dividend yield
Greater liquidity
Higher regulatory oversight
Limited access to information