Free Practice Questions for IBBI Land & Building

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Exam Review

Key Facts: IBBI Land & Building Exam

MCQs in the exam

IBBI Valuation Examination FAQs

120 minutes

Test duration

IBBI Valuation Examination FAQs

60%

Minimum marks to pass

IBBI Valuation Examination FAQs

25%

Negative marking per wrong answer

IBBI Valuation Examination FAQs

IBBI Land & Building valuation exam is a 2-hour, 100-mark online MCQ test with 90 questions including case studies. A candidate must score 60% to pass and 25% negative marking applies to wrong answers.

Sample IBBI Land & Building Practice Questions

Try these sample questions to review concepts for the IBBI Land & Building exam. Each question includes a detailed explanation. Start the interactive quiz above for the full 100+ question experience with AI tutoring.

1When proportionate change in price is equal to proportionate change in quantity demanded of any commodity, then such demand is referred to as:

A.unitary elastic demand

B.relatively elastic demand

C.relatively inelastic demand

D.cross elasticity

Explanation: Unitary elastic demand occurs when the percentage change in quantity demanded equals the percentage change in price, giving a price elasticity of exactly one. Total revenue stays constant along such a curve because the price effect and quantity effect offset each other perfectly.

2A market which has only one seller selling a homogeneous product to many buyers is best described as:

A.oligopoly

B.monopoly

C.perfect competition

D.monopolistic competition

Explanation: A monopoly is a market structure with a single seller of a homogeneous product facing many buyers, giving the seller price-setting power. The key tests are one seller, no close substitutes, and high barriers to entry.

3Theories of factor of production consider _____ to be the reward for the entrepreneur.

A.rent

B.interest

C.profit

D.capital

Explanation: In the theory of factors of production, profit is treated as the reward for the entrepreneur, who bears risk and organises the other factors. Rent rewards land, interest rewards capital, and wages reward labour.

4The frequency at which one unit of currency is used to purchase domestically produced goods and services within a given time period is best described as:

A.velocity of money

B.speed of money

C.momentum of money

D.count of circulation of money

Explanation: Velocity of money measures how many times a unit of currency changes hands over a period to purchase final goods and services. A higher velocity means the same money stock supports more transactions, linking money supply to nominal GDP.

5If a person has an income of INR30,000 and his consumption is INR10,000, then his propensity to save is:

A.1.33

B.0.33

C.0.67

D.1.50

Explanation: Propensity to save equals savings divided by income. Here savings are INR 30,000 minus INR 10,000 = INR 20,000, so the ratio is 20,000 / 30,000 = 0.67. It measures the share of each rupee of income that is not spent on consumption.

6Investment does not depend significantly upon the __________.

A.demand

B.level of income

C.progress of technology

D.expectation of the entrepreneur

Explanation: In Keynesian theory, investment is treated as autonomous, driven by the interest rate, technology, and the entrepreneur's expectations, rather than by the current level of income. Consumption, by contrast, is the component that depends directly on income.

7Difference between selling price and variable cost per unit can be classified as______ per unit.

A.contribution margin

B.interest margin

C.rent margin

D.profit margin

Explanation: Contribution margin per unit is the selling price per unit minus the variable cost per unit; the surplus contributes toward fixed costs and profit. It is the building block of break-even analysis and marginal costing.

8Which of these factors is not physical factor but affects the valuation of a subject property?

A.Damages to the building

B.Gross Domestic Product

C.Property location

D.Neighbourhood properties

Explanation: Gross Domestic Product is a macroeconomic aggregate, not a physical attribute of a subject property. The other three options (damages, location, and neighbouring properties) are all tangible or site-specific physical factors that a valuer inspects directly.

9A proposed development of four lane highway along a city suburban area _____.

A.decreases supply of land for development in area along the road

B.increases demand of land in the area along the road

C.decreases demand of land in the area along the road

D.increase cost of construction in the area

Explanation: A new four-lane highway improves accessibility and connectivity, making the adjoining area more attractive for residential and commercial use. Better access shifts the demand curve for land outward, raising land values along the corridor.

10Which of these does not represent correct meaning of properties, considered for valuation of properties, under income approach?

A.Unoccupied property

B.Owner occupied property

C.Building under construction

D.Rent fetching property

Explanation: The income approach capitalises the net income a property can generate; a building still under construction produces no rent yet, so it cannot be valued by income capitalisation until completion. The other three options all either earn or could earn income and so are compatible with the income approach.

About the IBBI Land & Building Exam

The IBBI Registered Valuers Examination for the Land & Building asset class is a 2-hour online proctored MCQ test. It covers valuation concepts, real-estate valuation methods, legal and regulatory frameworks, and case studies.

Exam sponsor: Insolvency and Bankruptcy Board of India (IBBI). The requirements and fees below concern the certification or admission exam, separate from our free practice resources.

Assessment

90 multiple-choice questions (80 of 1 mark + 10 of 2 marks, including case-study questions)

Time Limit

120 minutes (2 hours)

Passing Score

60% of total marks

Exam / Certification Fees

INR 1,500 per enrolment

Exam sponsor website

Fees, eligibility, and exam policies can change. Confirm them with the exam sponsor before applying or paying.

Official sources

Our practice resources: topics covered

We aim to reflect publicly available exam outlines and topic information in our study resources. Coverage, format, and difficulty may differ from the actual exam, and we cannot guarantee that every detail is accurate or current. Confirm exam requirements, fees, and policies with the official exam sponsor.

10%

Principles of Economics

Micro and macro economic concepts relevant to valuation

15%

Financial System & Corporate Finance

Indian financial system, financial markets and corporate finance basics

15%

Valuation Concepts & Principles

Fundamental valuation concepts and principles

25%

Valuation of Land & Building

Real-estate valuation approaches and methods

20%

Legal & Regulatory Framework

Relevant Indian laws, IBBI rules and valuation standards

15%

Case Studies

Case-based application of land and building valuation

Preparing for the IBBI Land & Building Exam

What You Need to Know

Passing score: 60% of total marks
Assessment: 90 multiple-choice questions (80 of 1 mark + 10 of 2 marks, including case-study questions)
Time limit: 120 minutes (2 hours)
Exam / certification fees: INR 1,500 per enrolment Official sources

Using Our Practice Resources

Work through all 100 available questions
Review every answer and explanation
Track weak areas and revisit them
Use our AI tutor for tough concepts

IBBI Land & Building: Suggested Study Strategy

1Study all laws in the syllabus as they are tested directly

2Practise cost, income and sales-comparison approaches for real estate

3Work through the case-study examples to understand multi-mark questions

Frequently Asked Questions

How many questions are in the Land & Building valuation exam?

There are 90 MCQs: 80 carry 1 mark each and 10 carry 2 marks each (including case studies).

What is the negative marking?

A wrong answer attracts a negative mark of 25% of the marks assigned to that question.

What is the passing criterion?

A candidate must secure at least 60% of the total marks to pass.