All Courses > Portfolios > 400
Portfolios 407: Real Estate Investment Trusts (REITs)

Test your knowledge

Choose wisely. There is only one correct answer to each question.

0%
Keep studying!
Review your answers below to learn more.
1.
A real estate investment trust is most likely to invest in _______.
Choose wisely. There is only one correct answer.
Factory outlet malls. About one fifth invest in retail enterprises, including shopping centers and factory outlet malls. Lower numbers of REITS also invest in many other different types of real estate, such as residential developments, hotels and resorts, self-storage businesses, and health-care facilities.
2.
One risk of holding a lot of mortgage loans in a REIT is that _______ can affect their performance.
Choose wisely. There is only one correct answer.
Fluctuating interest rates. Changing interest rates on mortgage loans can affect performance negatively.
3.
One advantage of investing in a real estate investment trust is _______.
Choose wisely. There is only one correct answer.
The potential for reasonably high dividends. REITs can add considerable income potential to an investment portfolio.
4.
The Tax Reform Act of 1986 expanded the powers of real estate investment trusts by _______.
Choose wisely. There is only one correct answer.
Allowing them to manage and operate real estate developments. Prior to the Tax Reform Act of 1986, REITs could own real estate, but they could not manage or operate it.
5.
You are most likely to be able to obtain REITs from _______.
Choose wisely. There is only one correct answer.
An investment broker. You can buy REITs from the same venues where you might obtain common stock and mutual funds.