20-35The Following Is One of Several Criteria a REIT Must

question 33

Multiple Choice

20-35.The following is one of several criteria a REIT must meet so as to be a tax-free entity:

• A) derive at least seventy-five percent of income from real estate related investments
• B) retain at least one-half of all income
• C) can not at any time sell off real estate assets
• D) none of the above

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Definitions:

Appreciate

To increase in value or price over time.

Fix Exchange Rate

A government or central bank policy of setting the exchange rate of a currency relative to other currencies.

Dollar-Yen Foreign Exchange

The exchange rate between the U.S. dollar and the Japanese yen, indicating how much yen can be exchanged for one U.S. dollar in the foreign exchange markets.

Trade Deficit

An economic condition that occurs when a country imports more goods and services than it exports.