Question 1

Consumer loans are typically very similar such that a comprehensive analytical format can be used for all loans.

Accepted Answer

A) True 
 B)False  False

Question 2

Which of the five Cs refers to an individual's wealth?

Accepted Answer

A) cash. 
B) capacity. 
C) character. 
D) conditions. 
E) capital 
A) cash. 
B) capacity. 
C) character. 
D) conditions. 
E) capital E

Question 3

Which of the following is an example of an indirect loan?

Accepted Answer

A) An automobile dealer negotiates the loan terms with the individual and then presents the agreement to the bank.The bank then makes the loan. 
B) An automobile dealer refers a customer to the local credit union.The customer goes to the credit union and gets an auto loan secured by the customer's certificates of deposit. 
C) A homebuyer gets a mortgage over the Internet. 
D) A student gets a student loan guaranteed by Sallie Mae. 
E) None of the above. 
A) An automobile dealer negotiates the loan terms with the individual and then presents the agreement to the bank.The bank then makes the loan. 
B) An automobile dealer refers a customer to the local credit union.The customer goes to the credit union and gets an auto loan secured by the customer's certificates of deposit. 
C) A homebuyer gets a mortgage over the Internet. 
D) A student gets a student loan guaranteed by Sallie Mae. 
E) None of the above. A

Question 4

Today, many banks target individuals as the primary source of growth in attracting new business.

Accepted Answer

A) True 
 B)False

Question 5

Individuals work out a court supervised repayment plan under:

Accepted Answer

A) Chapter 7 
B) Chapter 9 
C) Chapter 13 
D) Chapter 17 
E) Chapter 21 
A) Chapter 7 
B) Chapter 9 
C) Chapter 13 
D) Chapter 17 
E) Chapter 21

Question 6

Under current bankruptcy law, which of the following debts are not dischargeable under Chapter 7?

Accepted Answer

A) Past due child support 
B) Past due mortgage payments 
C) Past due credit card payments 
D) Past due auto loan payments 
E) All of the above are dischargeable under Chapter 7 bankruptcy law 
A) Past due child support 
B) Past due mortgage payments 
C) Past due credit card payments 
D) Past due auto loan payments 
E) All of the above are dischargeable under Chapter 7 bankruptcy law

Question 7

Which of the following is an example of a non-installment loan?

Accepted Answer

A) Credit card 
B) 30-year mortgage 
C) Bridge loan 
D) 5-year auto loan 
E) Home equity line of credit 
A) Credit card 
B) 30-year mortgage 
C) Bridge loan 
D) 5-year auto loan 
E) Home equity line of credit

Question 8

Which of the following has the lowest weight in determining a consumer's FICO score?

Accepted Answer

A) Types of credit 
B) Amounts owed 
C) Payment history 
D) Length of credit history 
E) Number of delinquencies 
A) Types of credit 
B) Amounts owed 
C) Payment history 
D) Length of credit history 
E) Number of delinquencies

Question 9

The most important of the five Cs of credit when evaluating a consumer loan application is:

Accepted Answer

A) cash. 
B) capacity. 
C) character. 
D) conditions. 
E) competition. 
A) cash. 
B) capacity. 
C) character. 
D) conditions. 
E) competition.

Question 10

Banks labeled "consumer lenders" have the heaviest concentration of loans in credit cards.

Accepted Answer

A) True 
 B)False

Question 11

Discuss why some are concerned at the recent increase in both credit card debt and personal bankruptcies.

Accepted Answer

There are several reasons why some peopl

Question 12

Use the following information for questions 
A bank customer is granted credit for a $2,000 loan at 10% to be repaid in 12 equal installments.
-If the loan quoted has an add-on rate, what is the approximate annual percentage rate (APR) on the loan?

Accepted Answer

A) 20% 
B) 18% 
C) 14% 
D) 12% 
E) 10% 
A) 20% 
B) 18% 
C) 14% 
D) 12% 
E) 10%

Question 13

The only quantitative measure of a consumer loan applicant's character is their:

Accepted Answer

A) down payment. 
B) home equity. 
C) time on the job. 
D) credit report. 
E) credit card balance. 
A) down payment. 
B) home equity. 
C) time on the job. 
D) credit report. 
E) credit card balance.

Question 14

Which is more expensive for a bank: 1.Making a loan to a customer that does not pay the loan back or 2.Denying a loan to someone who would have paid the bank? Explain your answer.

Accepted Answer

The answer of Which is more expensive for a bank:...

Question 15

Most consumer loans are secured.

Accepted Answer

A) True 
 B)False

Question 16

The purpose of the Truth in Lending Act of 1968 is to require lenders to quote:

Accepted Answer

A) home mortgage finance charges in a standardized manner. 
B) rates on all certificates of deposit in a standardized manner. 
C) payments with and without credit life insurance. 
D) consumer loan finance charges in a standardized manner. 
E) finance charges on loans over $100,000 in a standardized manner. 
A) home mortgage finance charges in a standardized manner. 
B) rates on all certificates of deposit in a standardized manner. 
C) payments with and without credit life insurance. 
D) consumer loan finance charges in a standardized manner. 
E) finance charges on loans over $100,000 in a standardized manner.

Question 17

Which of the following would be considered an unacceptable consumer loan?

Accepted Answer

A) A home improvement loan, secured by a first mortgage 
B) A home improvement loan, secured by a second mortgage 
C) A $10,000 loan on a new $30,000 boat, secured by the boat 
D) A loan on for 80% of the value on a new automobile, secured by the automobile 
E) A loan for 95% of the value of used skydiving equipment, secured by the equipment 
A) A home improvement loan, secured by a first mortgage 
B) A home improvement loan, secured by a second mortgage 
C) A $10,000 loan on a new $30,000 boat, secured by the boat 
D) A loan on for 80% of the value on a new automobile, secured by the automobile 
E) A loan for 95% of the value of used skydiving equipment, secured by the equipment

Question 18

Redlining is a lending practice of not extending credit:

Accepted Answer

A) to minimum wage earners. 
B) to finance low-income housing. 
C) to students. 
D) to targeted minority groups. 
E) within a geographic area that is believed to be deteriorating. 
A) to minimum wage earners. 
B) to finance low-income housing. 
C) to students. 
D) to targeted minority groups. 
E) within a geographic area that is believed to be deteriorating.

Question 19

Consumers are prohibited from disclosing if they receive public assistance when applying for credit.

Accepted Answer

A) True 
 B)False

Question 20

Which of the following are lenders prohibited from asking on a credit application?

Accepted Answer

A) The applicant's income 
B) If the applicant has a telephone 
C) If the applicant has declared bankruptcy in the past 
D) How long the applicant has been on the job 
E) Lenders are not prohibited from asking any of the above 
A) The applicant's income 
B) If the applicant has a telephone 
C) If the applicant has declared bankruptcy in the past 
D) How long the applicant has been on the job 
E) Lenders are not prohibited from asking any of the above

Consumer loans are typically very similar such that a comprehensive analytical format can be used for all loans.

Which of the five Cs refers to an individual's wealth?

Which of the following is an example of an indirect loan?

Today, many banks target individuals as the primary source of growth in attracting new business.

Individuals work out a court supervised repayment plan under:

Under current bankruptcy law, which of the following debts are not dischargeable under Chapter 7?

Which of the following is an example of a non-installment loan?

Which of the following has the lowest weight in determining a consumer's FICO score?

The most important of the five Cs of credit when evaluating a consumer loan application is:

Banks labeled "consumer lenders" have the heaviest concentration of loans in credit cards.

Discuss why some are concerned at the recent increase in both credit card debt and personal bankruptcies.

Use the following information for questions A bank customer is granted credit for a $2,000 loan at 10% to be repaid in 12 equal installments. -If the loan quoted has an add-on rate, what is the approximate annual percentage rate (APR) on the loan?

The only quantitative measure of a consumer loan applicant's character is their:

Which is more expensive for a bank: 1.Making a loan to a customer that does not pay the loan back or 2.Denying a loan to someone who would have paid the bank? Explain your answer.

Most consumer loans are secured.

The purpose of the Truth in Lending Act of 1968 is to require lenders to quote:

Which of the following would be considered an unacceptable consumer loan?

Redlining is a lending practice of not extending credit:

Consumers are prohibited from disclosing if they receive public assistance when applying for credit.

Which of the following are lenders prohibited from asking on a credit application?

Banking and the Financial Services Industry

Government Policies and Regulation

Analyzing Bank Performance

Managing Noninterest Income and Noninterest Expense

The Performance of Nontraditional Banking Companies

Pricing Fixed-Income Securities

Managing Interest Rate Risk: Gap and Earnings Sensitivity

Managing Interest Rate Risk: Economic Value of Equity

Using Derivatives to Manage Interest Rate Risk

Funding the Bank

Managing Liquidity

The Effective Use of Capital

Overview of Credit Policy and Loan Characteristics

Evaluating Commercial Loan Requests and Managing Credit Risk

Managing the Investment Portfolio

Global Banking Activities

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Exam 15: Evaluating Consumer Loans

Consumer loans are typically very similar such that a comprehensive analytical format can be used for all loans.

Which of the five Cs refers to an individual's wealth?

Which of the following is an example of an indirect loan?

Today, many banks target individuals as the primary source of growth in attracting new business.

Individuals work out a court supervised repayment plan under:

Under current bankruptcy law, which of the following debts are not dischargeable under Chapter 7?

Which of the following is an example of a non-installment loan?

Which of the following has the lowest weight in determining a consumer's FICO score?

The most important of the five Cs of credit when evaluating a consumer loan application is:

Banks labeled "consumer lenders" have the heaviest concentration of loans in credit cards.

Discuss why some are concerned at the recent increase in both credit card debt and personal bankruptcies.

Use the following information for questions A bank customer is granted credit for a $2,000 loan at 10% to be repaid in 12 equal installments. -If the loan quoted has an add-on rate, what is the approximate annual percentage rate (APR) on the loan?

The only quantitative measure of a consumer loan applicant's character is their:

Which is more expensive for a bank: 1.Making a loan to a customer that does not pay the loan back or 2.Denying a loan to someone who would have paid the bank? Explain your answer.

Most consumer loans are secured.

The purpose of the Truth in Lending Act of 1968 is to require lenders to quote:

Which of the following would be considered an unacceptable consumer loan?

Redlining is a lending practice of not extending credit:

Consumers are prohibited from disclosing if they receive public assistance when applying for credit.

Which of the following are lenders prohibited from asking on a credit application?

Banking and the Financial Services Industry

Government Policies and Regulation

Analyzing Bank Performance

Managing Noninterest Income and Noninterest Expense

The Performance of Nontraditional Banking Companies

Pricing Fixed-Income Securities

Managing Interest Rate Risk: Gap and Earnings Sensitivity

Managing Interest Rate Risk: Economic Value of Equity

Using Derivatives to Manage Interest Rate Risk

Funding the Bank

Managing Liquidity

The Effective Use of Capital

Overview of Credit Policy and Loan Characteristics

Evaluating Commercial Loan Requests and Managing Credit Risk

Managing the Investment Portfolio

Global Banking Activities

Filters