Alabama Real Estate Practice Exam

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Prepare for the Alabama Real Estate Exam. Utilize flashcards and multiple-choice questions, each coupled with hints and explanations. Ace your upcoming test!

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!

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What is the role of the secondary market?

Originate new mortgages
Insure mortgages
Buy existing mortgages
Provide legal advice on mortgages

The correct answer is: Buy existing mortgages

Secondary market refers to a market where existing mortgages are bought and sold by financial institutions such as banks and investment firms. The incorrect options, A and B, are examples of tasks performed in the primary market - where new loans are originated and insured. Option D, providing legal advice on mortgages, is unrelated to the role of the secondary market, which mainly deals with the trading of existing mortgages.