Series 7 Exam Question 59: Answer and Explanation

Question: 59

Which of the following are classifications of real estate investment trusts?

I. Combination

II. Hybrid

III. Equity

IV. Mortgage

• A. I and II
• B. I, III, and IV
• C. II and III
• D. II, III, and IV

Correct Answer: D

Explanation:

D. The three classifications of real estate investment trusts (REITs) are equity REITS, which take equity positions in real estate; mortgage REITs, which provide loans and mortgages; and hybrid REITs, which are a combination of the other two.