SIE practice questionhardREITs
Which of the following is true of an equity REIT?
- AIt cannot pay dividends to shareholders
- BIt makes short-term commercial loans
- CIt primarily owns and operates income-producing real properties✓ Correct answer
- DIt invests only in mortgage-backed securities
Explanation
Why C — It primarily owns and operates income-producing real properties
A is correct; equity REITs own and operate real estate. B and D are features of mortgage REITs. C is false—REITs are required to pay dividends.
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.
Related Investment Companies & Packaged Products questions
- Why are hedge funds subject to less disclosure and fewer regulations than mutual funds?
- If a 529 plan's funds are used for non-qualified expenses, the account owner may be subject to:
- Which of the following most accurately describes the pricing of shares in an open-end mutual fund?
- A key risk associated with variable annuities, but not with fixed annuities, is: