Which of the Following Is Not Correct

question 32

Multiple Choice

Which of the following is not correct?

• A) all real estate salespersons must have written employment contracts with their brokers
• B) real estate salespersons are able to contract directly in their own name as an agent with the seller
• C) the recovery fund may be used to reimburse qualified principals and buyers for damages suffered because of certain inappropriate acts by real estate licensees
• D) most real estate agency agreements are between sellers and brokers, not buyers and brokers

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Definitions:

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, is due to be repaid.

Investment Grade

Refers to the quality of a company's credit. To be considered investment grade, a company's debt must be rated at BBB- or higher by Standard and Poor's, or Baa3 or higher by Moody's.

Standard & Poor's

A financial market intelligence company known for its stock market indices such as the S&P 500, as well as its credit ratings of borrowers.

Liquidity Preference Theory

A theory that suggests investors demand a higher interest rate or premium on securities with longer maturities to compensate for the increased risk of holding them.