Free PSI Practice Test Sample Questions

Q1: A parcel described as the E ½ of the SW ¼ of the SE ¼ of Section 15 was put on the market at $400 per acre, with the agent receiving a 6% commission. The agent presented a bid of $6,800 for the land. The seller agreed to the offer on the condition that the purchaser covers the agent's commission, calculated at 6% of the bid value. What would be the difference between the initial asking price and the total amount the buyer pays including the commission?

a. $792
b. $806
c. $650
d. $466

A1: The correct answer is A.
Follow the following steps to answer the question:
1. First, calculate the size of the parcel. The description "E ½ of the SW ¼ of the SE ¼ of Section 15" translates to 1/2 * 1/4 * 1/4 = 1/32 of a section. Since a section is typically 640 acres, the parcel size is 640 acres / 32 = 20 acres.
2. Calculate the initial asking price: 20 acres * $400/acre = $8,000.
3. The offer made was $6,800.
4. Calculate the commission: 6% of $6,800 = $408.
5. Calculate the total amount the buyer would pay including the commission: $6,800 + $408 = $7,208.
6. Determine the difference between the initial asking price and the total amount paid by the buyer: $8,000 - $7,208 = $792.

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Q2: Which of the following methods is NOT a valid way to establish a relationship between a real estate agent and their client?

a. An agreement inferred from the actions of the parties involved.
b. A verbal agreement between the agent and the client.
c. Formal authorization from the client to the agent.
d. An unsolicited proposal from the agent to represent the client.

A2: The correct answer is D.

This question focuses on understanding the various ways in which a contractual relationship can be formed between a real estate agent and their client, with a specific emphasis on identifying a method that is not considered valid or typical in creating such a relationship.

A. An agreement inferred from the actions of the parties involved (implied contract) is a valid way to establish an agency relationship. This occurs when the actions of the agent and the client suggest that they have mutually agreed to an agency relationship, even if there is no written or verbal agreement.

B. A verbal agreement between the agent and the client (oral contract) is also recognized in many jurisdictions as a valid way to create an agency relationship. However, it's worth noting that certain types of agency agreements, particularly those involving the sale of real estate, may require written contracts to be legally enforceable due to statutes such as the Statute of Frauds.

C. Formal authorization from the client to the agent (appointment by the principal) is a standard and explicit way to establish an agency relationship. This often involves a written contract where the client (principal) formally appoints the real estate agent to act on their behalf in matters such as selling or buying property.

D. An unsolicited proposal from the agent to represent the client (voluntary offer by the agent) is not typically a method to validly establish an agency relationship. For an agency contract to be valid, there must be mutual consent, and the initiation of the relationship typically comes from the principal (client) who seeks the services of the agent, rather than the agent offering unsolicited representation.

In this context, option D is the least typical or valid method for establishing an agency relationship in real estate, as it lacks the element of mutual agreement or formal appointment which is essential for creating a binding contractual relationship.

Q3: In a lease agreement with an option to buy, who is obligated to uphold the terms of the option?

a. Neither the lessee nor the lessor.
b. The lessee exclusively.
c. The lessor exclusively.
d. Both the lessee and the lessor.

A3: The correct answer is D.

By focusing on lease agreements, the question explores the obligations related to options to buy within a different framework, maintaining relevance to real estate transactions but introducing a new element—the lease. The options provided are tailored to this context, distinguishing between the roles of lessee (tenant) and lessor (landlord), thereby offering a nuanced perspective on contractual obligations when an option to buy is part of a lease.

Q4: In a lease agreement with an option to buy, who is obligated to uphold the terms of the option?

a. Neither the lessee nor the lessor.
b. The lessee exclusively.
c. The lessor exclusively.
d. Both the lessee and the lessor.

A4: The correct answer is B.

Functional obsolescence can often be mitigated or corrected through renovations or modifications to the property, making "Through renovation or modification" the correct answer. This approach maintains the theme of property valuation and obsolescence but explores a different type of obsolescence and how it is addressed, offering a fresh perspective on the topic.

Q5: In the comparative market analysis for residential properties, what is the primary factor considered for comparison?
a. Lot size
b. Age of the property
c. Square footage of the property
d. Proximity to amenities

A5: The correct answer is C.

The CMA (Comparative Market Analysis) is a technique used by real estate professionals to determine the value of a property by comparing it to similar properties in the same area. Among the factors considered, square footage is often the primary one, as it provides a direct and quantifiable basis for comparison, making "Square footage of the property" the correct answer. This maintains the theme of property valuation but focuses on a different aspect, providing a new angle on how properties are evaluated in real estate.

Q1: Which class of small, unmanned aircraft systems (UAS) must be registered with the FAA before operation in national airspace?

a. Class 1
b. Class 2
c. Class 3

A1: The correct answer is B.

The FAA mandates that all small unmanned aircraft systems (UAS) weighing more than 0.55 pounds (250 grams) and less than 55 pounds (approximately 25 kilograms) must be registered with the FAA before they are operated in the national airspace. This requirement generally falls under what can be classified as "Class 2" UAS based on their weight. Registration is a crucial step in ensuring accountability and safety in the airspace, as it helps to identify the aircraft and its operator in the event of an incident or if the UAS is found in a restricted area. This registration process is part of the FAA's efforts to integrate UAS safely into the national airspace system, promoting responsible flying and enhancing the safety of other airspace users.

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Q2: Under what condition would a small, unmanned aircraft's (UAS) GPS navigation be most likely to experience significant errors or loss of accuracy?
a. During clear, sunny weather with no visible interference.
b. When flying near large bodies of water.
c. Near areas with strong radio frequency (RF) interference.

A2: The correct answer is C.

GPS navigation systems rely on signals from satellites to determine the position of the aircraft. These signals can be disrupted by strong radio frequency (RF) interference, which can come from a variety of sources such as communication towers, radar systems, and other electronic devices. RF interference can cause the GPS to lose accuracy or even fail to maintain a lock on the satellite signals, leading to navigation errors. While weather conditions like clouds and rain can slightly affect GPS signal strength, they typically do not cause significant errors or loss of accuracy. Similarly, proximity to large bodies of water does not inherently disrupt GPS signals. Therefore, areas with strong RF interference present the most risk to the accuracy of a UAS's GPS navigation system.

Q3:What is the significance of the VFR cruising altitude rule when flying above 3,000 feet AGL in uncontrolled airspace?

a. It requires aircraft to fly at even thousand-foot levels plus 500 feet when on a magnetic course of 180° through 359°.
b. It specifies that flights must maintain an altitude of 500 feet above the highest obstacle within a horizontal radius of 1,000 feet of the aircraft.
c. It mandates that when flying at more than 3,000 feet above ground level (AGL), the altitude must be at an odd thousand-foot level plus 500 feet when on a magnetic course of 0° through 179°.

A3: The correct answer is A.

The VFR (Visual Flight Rules) cruising altitude rule is designed to enhance the safety of flight by providing vertical separation between aircraft flying in opposite directions. According to this rule, when flying above 3,000 feet AGL in uncontrolled airspace under VFR, an aircraft's altitude depends on its magnetic course. If the magnetic course is between 0° and 179° (generally, easterly directions), the aircraft must fly at odd thousand-foot levels plus an additional 500 feet (e.g., 3,500 feet, 5,500 feet, etc.). This rule helps to ensure that aircraft flying in opposite directions are separated by a minimum vertical distance, reducing the risk of mid-air collisions. The rule for even thousand-foot levels plus 500 feet applies to magnetic courses from 180° through 359°, which are generally westerly directions. This systematic approach to cruising altitudes under VFR conditions aids in the orderly management of aircraft in uncontrolled airspace, where air traffic control does not provide separation services.

Q1: What is the significance of the VFR cruising altitude rule when flying above 3,000 feet AGL in uncontrolled airspace?

a. It requires aircraft to fly at even thousand-foot levels plus 500 feet when on a magnetic course of 180° through 359°.
b. It specifies that flights must maintain an altitude of 500 feet above the highest obstacle within a horizontal radius of 1,000 feet of the aircraft.
c. It mandates that when flying at more than 3,000 feet above ground level (AGL), the altitude must be at an odd thousand-foot level plus 500 feet when on a magnetic course of 0° through 179°.

A1: The correct answer is C.

Keratin is the fundamental protein that makes up the hair, as well as nails and the outer layer of skin. It is a protective protein, less prone to scratching or tearing than other types of cells your body produces. Keratin's robustness and resistance to wear and tear contribute to the hair's strength and durability. It provides the hair with its structure and protective quality, helping to keep it healthy and resilient against external damage. Unlike other proteins, keratin has a high sulfur content, provided by an amino acid called cysteine, which helps form strong disulfide bonds contributing to the overall strength and rigidity of the hair. This is why treatments aimed at improving hair strength and texture often focus on replenishing keratin levels within the hair shaft.

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Q2: In the context of scalp and hair health, which organism is recognized as a common parasitic infestation that can cause significant discomfort and requires treatment?

a. Lice
b. Dermatitis
c. Melanocytes
d. Keratocytes

A2: The correct answer is A.

Lice are tiny parasitic insects that infest the hair and scalp, causing conditions such as pediculosis capitis. These parasites feed on small amounts of blood from the scalp, leading to itching and irritation. Lice infestations are common, especially in crowded environments and among children, as they spread through close personal contact and sharing of personal items like hats and brushes. Effective treatment typically involves the use of medicated shampoos or lotions specifically designed to kill lice, along with thorough combing to remove nits (lice eggs) from the hair. Preventive measures include maintaining good personal hygiene and avoiding sharing personal items that come into contact with the hair.

Q3: What is the primary benefit of conducting a thorough hair and scalp analysis before initiating any chemical treatment, such as coloring or perming?

a. Enhances the chemical reaction of products.
b. Minimizes the risk of adverse reactions and ensures suitability of the treatment.
c. Extends the duration of the treatment effects.
d. Simplifies the choice of styling tools.

A3: The correct answer is B.

Conducting a detailed hair and scalp analysis before applying chemical treatments is crucial for identifying any potential issues that might affect the treatment's outcome or cause harm to the client. This analysis helps in assessing the hair's texture, porosity, elasticity, and overall health, as well as the condition of the scalp. By understanding these factors, a cosmetologist can determine the most appropriate products and techniques to use, thereby minimizing the risk of damage, allergic reactions, or unsatisfactory results. This step is essential for ensuring the safety and satisfaction of the client, and it showcases the stylist's professionalism and commitment to providing personalized, high-quality care.

Q4: What role does the natural porosity of hair play in determining the outcome of a hair coloring service?

a. Influences how quickly and evenly the hair absorbs and retains color.
b. Determines the speed of color fading.
c. Has no impact on color retention.
d. Affects only the shine and not the color.

A4: The correct answer is A.

The porosity of hair refers to its ability to absorb and retain moisture and chemicals, which is a critical factor in hair coloring services. Hair with high porosity due to damage from heat, chemical treatments, or environmental factors can absorb color quickly but may also release it quickly, leading to uneven color, faster fade, and potentially more damage. Conversely, low-porosity hair has a tightly bound cuticle layer, making it more resistant to absorbing color, which can result in the need for a longer processing time or the use of higher developer volumes to achieve the desired color level. Understanding a client's hair porosity allows a cosmetologist to adjust the coloring technique and products used, ensuring a more desirable and lasting color outcome while maintaining the integrity of the hair.

Q5: Which part of the hair structure is responsible for the growth of the hair shaft and is located at the base of the hair follicle?

a. Hair cuticle
b. Hair cortex
c. Hair matrix
d. Hair medulla

A5: The correct answer is C.

The hair matrix is a highly active, cellular area of the hair follicle located around the dermal papilla at the base of the hair follicle. It is responsible for producing new cells that become the hair shaft and the inner root sheath, driving the growth of hair. The cells in the matrix divide rapidly, and as they grow and move upward, they keratinize and die, forming the hair shaft that is visible above the skin surface. The health and functionality of the hair matrix are crucial for hair growth and its characteristics such as color, thickness, and texture, as it contains melanocytes that produce melanin, giving hair its color.

Q1: What distinguishes a "surplus lines" insurer from a standard insurer in the context of insurance regulation?

a. A "surplus lines" insurer provides surplus funds to policyholders, whereas a standard insurer does not offer such financial benefits.
b. A "surplus lines" insurer specializes in providing insurance for high-risk individuals, unlike standard insurers who avoid high-risk policies.
c. A "surplus lines" insurer operates without a state license, in contrast to standard insurers who are required to be licensed by the state insurance department.
d. A "surplus lines" insurer is required to maintain higher capital reserves than a standard insurer, to ensure financial stability.

A1: The correct answer is B.

A "surplus lines" insurer specializes in underwriting more unusual or higher-risk insurance coverage that standard insurers typically avoid. These insurers fill the need for coverage in the marketplace by ensuring those risks that admitted (standard) insurers cannot or will not insure due to the nature of the risk. While "surplus lines" insurers are not licensed in the same manner as standard insurers, they are still subject to regulatory oversight and must be approved to operate on a "non-admitted" basis within a state.

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Q2: What is the role of a "captive" insurance company compared to a traditional insurance provider?

a. A "captive" insurance company offers insurance exclusively to the public, while traditional insurers provide services to both individuals and businesses.
b. A "captive" insurance company is regulated by international laws only, whereas traditional insurers are subject to domestic insurance regulations.
c. A "captive" insurance company operates on a not-for-profit basis, in contrast to traditional insurers who aim to make a profit.
d. A "captive" insurance company is owned by its insureds and primarily insures the risks of its parent group or groups, unlike traditional insurers who serve a broader market.

A2: The correct answer is D.

A "captive" insurance company is a subsidiary established by one or more parent companies to insure the risks of its owners. This setup allows the parent company or companies to have greater control over their risks and insurance costs, compared to purchasing insurance from traditional, external insurers. Captives are used by companies to manage risks that are either too costly or too difficult to insure through the traditional insurance market.

Q3: In the context of property and casualty insurance, which of the following is NOT typically covered under a standard homeowners insurance policy?

a. Personal property damage within the home.
b. Liability for injuries occurring on the property.
c. Automobile damage, even if it's parked on the property.
d. Structural damage to the home itself.

A3: The correct answer is C.

Automobile damage, even if it's parked on the property, is not typically covered under a standard homeowners insurance policy. Homeowners insurance generally covers the structure of the home, personal belongings within the home, liability protection, and additional living expenses if the home is uninhabitable due to a covered loss. However, damage to automobiles, even when they are on the property, is usually covered under an auto insurance policy, not homeowners' insurance.

Q4: Which of the following is NOT a typical feature of term life insurance?

a. Fixed premium payments for the duration of the term.
b. The potential to accumulate cash value over time.
c. A set expiration date after a specific period.
d. Payout of a death benefit if the insured passes away during the term.

A4: The correct answer is B.

The potential to accumulate cash value over time is not a typical feature of term life insurance. Term life insurance provides coverage for a specified period and pays out a death benefit if the insured dies during that term. Unlike whole life or other forms of permanent insurance, it does not include a savings component or cash value accumulation.

Q5: What distinguishes Medicare from other health insurance programs?

a. It is designed exclusively for individuals regardless of income or medical history.
b. It primarily serves people under the age of 65 with disabilities.
c. It is a federally funded program for individuals aged 65 and older, as well as for some younger people with disabilities.
d. It offers financial assistance to all unemployed individuals for medical expenses.

A5: The correct answer is C.

Medicare is a federally funded program that provides health insurance primarily to individuals aged 65 and older, regardless of income, medical history, or health status. It also serves younger individuals with certain disabilities and people with End-Stage Renal Disease (permanent kidney failure requiring dialysis or a transplant). Medicare is different from Medicaid, which is a program designed to help with medical costs for people with limited income and resources.