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Florida Real Estate Exam

Category - Florida

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The net effect of a tight money policy implemented by the Federal Reserve Board would be the increasing of:

New home sales
Use of new first mortgages in real estate financing
Use of junior loans in real estate financing
Supply of money available for real estate financing

Explanation

Answer C - A tight money policy will cause a scarcity of money for financing. This usually means that there will be an increase of junior loans in real estate financing (seller carry backs).

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