North Dakota Real Estate Practice Exam

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Prepare for the North Dakota Real Estate Exam with our interactive quiz. Utilize multiple choice questions and detailed explanations to enhance your comprehension. Equip yourself for success in your upcoming exam!

Each practice test/flash card set has 50 randomly selected questions from a bank of over 500. You'll get a new set of questions each time!

Practice this question and more.

Which of the following statements about the Real Estate fund is true?

The fund is government-funded
The fund is supported by real estate transactions
The fund is privately managed by real estate agents
The fund is used for real estate development

The correct answer is: The fund is supported by real estate transactions

The statement that the fund is supported by real estate transactions is accurate because real estate funds typically earn revenue through various real estate-related activities, such as fees generated from property sales, leases, and other transaction-related services. This means that as real estate transactions occur, they contribute to the financial health and sustainability of the fund. In contrast, the notion that the fund is government-funded does not align with the operational structure of most real estate funds, as they primarily rely on private sector activities and transactions rather than direct government support. The idea that the fund is privately managed by real estate agents can be misleading too, as real estate funds are generally managed by investment firms or financial institutions, rather than solely individual agents. Lastly, while funds may invest in or support real estate development projects, this is not their primary purpose; the main objective is to facilitate transactions and provide a pool of resources for these activities rather than directly managing development initiatives.