SIE practice questionmediumREITs
A mortgage REIT primarily earns income from:
- ATrading in listed equities
- BRental income from properties owned
- CSales of undeveloped land
- DInterest on loans secured by real estate✓ Correct answer
Explanation
Why D — Interest on loans secured by real estate
Mortgage REITs primarily earn interest on loans or mortgage-backed investments secured by real estate. Rental income from owned properties is associated with equity REITs.
Turn it into reps
Reading one answer is not the same as being ready
Lucky the Banker is a free practice app with 1,867+ SIE questions, weak-area tracking, and timed mock exams. No credit card, no paywall.
Spot an error in this question or explanation? Tell us — we fix these fast.
Related Investment Companies & Packaged Products questions
- Class C mutual fund shares are typically most appropriate for:
- An investor in a UIT can expect which of the following at termination?
- The price that an investor pays for a closed-end fund share is usually:
- What is an advantage of ETFs over traditional mutual funds?
- Which investor is generally eligible to purchase hedge funds?
- Which practice is common for hedge funds but not for mutual funds?
- A unique tax advantage of ETFs over open-end mutual funds is that ETFs:
- Shares of a closed-end fund may trade at a discount to NAV for which primary reason?
