The Rationale for Using the Cost Approach to Appraisal Is

question 22

True/False

The rationale for using the cost approach to appraisal is that any informed buyer would not pay more for a property than what it would cost to buy the land and build the structure.

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Definitions:

Debit Card

Cards that tap directly into the depositor’s bank account to fund purchases; also called a check card.

Checking Account

A bank account that allows the account holder to access funds, make payments, and manage transactions with ease.

Excess Reserves

Bank reserves in excess of the required minimum, which can be lent out or invested.

Total Reserves

The sum of all deposits, including cash, bank deposits, and investable assets, held by a financial institution or country.