For appraisal purposes, "capitalization" is a process used to:

a. establish current market value.
b. determine annual net income.
c. find interest rate.
d. convert income into value.

Answer: d. convert income into value.

Business

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Under the Trustee's Sale procedure, after a Notice of Default has been recorded, a borrower has how long to reinstate by making up past payments, penalties, late charges, and trustee expenses?

a. 5 days prior to trustee's sale date b. 90 days c. 3 months d. 1 year

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Reciprocity is:

A) Creating debts and obligations for doing something B) Keeping a mental scorecard of who "owes" you a favor at work C) Both A and B D) None of the above

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