Question 1

Salomon Brothers' collateralized automobile receivables securities are labeled:

Accepted Answer

A)  AUTOs. 
B)  CARDs. 
C)  VANs. 
D)  CARs. 
E)  RACs. 
A)  AUTOs. 
B)  CARDs. 
C)  VANs. 
D)  CARs. 
E)  RACs.

Question 2

Credit cards typically provide lower risk-adjusted returns than other types of consumer loans.

Accepted Answer

A) True 
 B)False

Question 3

Losses on credit cards are among the highest of all consumer loan types.

Accepted Answer

A) True 
 B)False

Question 4

Prepaid cards:

Accepted Answer

A)  have a high risk of loss 
B)  are a hybrid of the debit card 
C)  have high processing costs 
D)  all of the above 
E)  none of the above 
A)  have a high risk of loss 
B)  are a hybrid of the debit card 
C)  have high processing costs 
D)  all of the above 
E)  none of the above

Question 5

Revolving credit may take the form of:

Accepted Answer

A)  overdraft protection. 
B)  demand deposit accounts. 
C)  excess reserves. 
D)  automobile loans. 
E)  interchange credit. 
A)  overdraft protection. 
B)  demand deposit accounts. 
C)  excess reserves. 
D)  automobile loans. 
E)  interchange credit.

Question 6

Discuss the major differences between consumer and commercial loans.

Accepted Answer

Consumer loans and commercial loans are

Question 7

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 are the net proceeds of the loan?

Accepted Answer

A)  $2,200 
B)  $2,100 
C)  $2,000 
D)  $1,800 
E)  Cannot be determined 
A)  $2,200 
B)  $2,100 
C)  $2,000 
D)  $1,800 
E)  Cannot be determined

Question 8

When a bank keeps dealer reserves, the reserves are primarily used:

Accepted Answer

A)  to cover charge-offs. 
B)  to increase bank profits. 
C)  to increase dealer profits. 
D)  to reduce taxes. 
E)  to increase advertising revenues. 
A)  to cover charge-offs. 
B)  to increase bank profits. 
C)  to increase dealer profits. 
D)  to reduce taxes. 
E)  to increase advertising revenues.

Salomon Brothers' collateralized automobile receivables securities are labeled:

Credit cards typically provide lower risk-adjusted returns than other types of consumer loans.

Losses on credit cards are among the highest of all consumer loan types.

Prepaid cards:

Revolving credit may take the form of:

Discuss the major differences between consumer and commercial loans.

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 are the net proceeds of the loan?

When a bank keeps dealer reserves, the reserves are primarily used:

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: Duration Gap and 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

Exam 15: Evaluating Consumer Loans

Salomon Brothers' collateralized automobile receivables securities are labeled:

Credit cards typically provide lower risk-adjusted returns than other types of consumer loans.

Losses on credit cards are among the highest of all consumer loan types.

Prepaid cards:

Revolving credit may take the form of:

Discuss the major differences between consumer and commercial loans.

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 are the net proceeds of the loan?

When a bank keeps dealer reserves, the reserves are primarily used:

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: Duration Gap and 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