Free ARM Practice Questions

Question 1

At a 140-unit apartment community, parking is free and unassigned. A resident whose substantial walking limitation is apparent verbally requests an available space near her entrance. Reserving it would require only a sign and would not displace another resident. What response meets the Fair Housing Act's reasonable-accommodation requirement?

Accepted Answer

Reserve the space as requested, without an added fee or medical verification.

Answer

Reserve the space after the resident submits a physician-signed accommodation request.

Answer

Reserve the space and charge the resident only the cost of the sign.

Answer

Keep the space unassigned so the parking policy applies equally to every resident.

Question 2

A manager identifies three changes for the coming year: a verified $18,000 annual saving from a renegotiated service contract with no reduction in service, a one-time $6,000 vendor refund, and $12,000 of routine repairs postponed to the following year. All other operations remain unchanged. At an unchanged 6% capitalization rate, what increase in indicated value is attributable to the recurring improvement in annual net operating income?

Accepted Answer

$300,000

Answer

$400,000

Answer

$500,000

Answer

$600,000

Question 3

A top-floor ceiling stain returns after wind-driven rain. During the latest storm, the unit was vacant, its water supply was isolated, and its heating and cooling equipment was off. Moisture is concentrated beneath a roof vent penetration. Taken together, these findings most strongly suggest:

Accepted Answer

Deteriorated flashing around the roof penetration

Answer

A blocked condensate drain at the indoor cooling coil

Answer

A leaking pressurized water-supply connection inside the unit

Answer

Condensation forming on an uninsulated cold-water pipe

Question 4

Since introducing a bonus for same-day work-order closure, a manager has seen fewer open orders but more callbacks for the same defects. Spot checks show that technicians know how to perform the repairs; several orders were closed while parts were still pending. Which revised incentive would most directly reward completed service?

Accepted Answer

Reward timely, verified repairs together with a low repeat-call rate.

Answer

Reward reductions in the number of open work orders.

Answer

Reward each technician's shortest average recorded completion time.

Answer

Reward the technician with the highest resident ratings for courtesy and professionalism.

Question 5

The month-end bank statement omits a vendor check that the property issued and recorded on the last business day of the month. The vendor confirms receipt, and the check clears early the next month. Every other item reconciles. How should this check be treated in the month-end reconciliation?

Accepted Answer

Deduct it from the bank balance as outstanding; make no new ledger entry.

Answer

Deduct it from both bank and ledger cash so each balance includes the same payment.

Answer

Move the payment to the next month, when the check cleared.

Answer

Add it back to ledger cash for month-end and record the payment again when it clears.

Question 6

During an evening inspection, a manager smells a strong gas odor in an occupied building's common corridor. A maintenance employee offers to enter the meter room to locate the leak. Neither employee is trained to handle a gas emergency. What takes priority over investigating the source?

Accepted Answer

Move occupants to safety and call 911 from outside the affected area, without operating electrical switches.

Answer

Call the utility from the corridor while the technician checks the meter.

Answer

Cut power at the main switch before asking residents to leave.

Answer

Start the exhaust fans to disperse gas before deciding whether to evacuate.

Question 7

A comparable apartment is advertised at $1,800 per month for 12 months, with one month of base rent free. It also requires a $100 utility charge in each of the 12 months and a fully refundable $600 security deposit. Your apartment costs $1,700 per month for the same term, includes the same utilities, and offers no concession. Comparing average monthly rent and mandatory utility charges, which statement is accurate?

Accepted Answer

Your apartment costs $50 less per month.

Answer

Your apartment costs $50 more per month.

Answer

Your apartment costs $100 less per month.

Answer

Your apartment costs $200 less per month.

Question 8

A condominium board approves a common-area painting project. The management agreement expressly permits the manager to sign budgeted contracts up to $7,500 without another board vote. All required bidding and insurance checks are complete, and a qualified contractor offers the approved scope for $6,800. Funding is available. Which statement correctly describes the manager's authority?

Accepted Answer

The manager may award the contract and report it to the board.

Answer

A separate board vote is required for this particular expenditure.

Answer

Only the board president may sign a contract binding the association.

Answer

Each director must individually consent before the manager can commit the association's funds.

Question 9

Three equally qualified roofing contractors respond to a request that says only 'replace the roof.' One bid excludes disposal, another specifies a thinner membrane, and the third includes a longer warranty. The manager cannot tell which price covers the intended work. What should happen before the bids are ranked?

Accepted Answer

Issue a complete written scope and obtain revised bids on that same basis.

Answer

Estimate allowances for missing items and rank the adjusted prices.

Answer

Award the bid with the longest warranty, then negotiate any exclusions.

Answer

Reject all three firms and seek new bidders using the original request for proposals.

Question 10

January's cash-disbursement report shows an unbudgeted $24,000 insurance payment. The annual premium had been budgeted for February, but the insurer moved the due date forward. Coverage and the annual premium are unchanged, and the policy has now been paid in full. Which revision belongs in the remaining cash forecast?

Accepted Answer

Remove February's planned payment; the annual insurance cash requirement is unchanged.

Answer

Retain a second payment in February as protection against underfunding.

Answer

Add $24,000 to the annual insurance budget.

Answer

Spread the payment across the coverage months as the policy expense is incurred.

Free ARM Practice Questions

Domain 1: ARM 400 Risk in an Evolving World

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Domain 2: ARM 401 Holistically Assessing Risk

Question 2

Domain 3: ARM 402 Successfully Treating Risk

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