California Real Estate Practice Exam

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Master the California Real Estate Exam with our comprehensive practice quiz. Get expert tips, detailed content review, and insider strategies to pass on your first try.

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 main purpose of creating a negotiable instrument in financial transactions?

To increase interest rates
To decrease the loan amount
To allow a note to be transferred
To finalize the sale of a property

The correct answer is: To allow a note to be transferred

A, B, and D are incorrect because they do not accurately reflect the main purpose of creating a negotiable instrument. Creating a negotiable instrument is not intended to increase interest rates, decrease loan amount, or finalize a sale of property. The main purpose of creating a negotiable instrument is to allow a note or document to be transferred from one party to another in a financial transaction, providing a legally recognized proof of debt and promoting ease of exchange.