Question 1

Credit card fee income comes from

Accepted Answer

A)  late payments 
B)  cash advances 
C)  exceeding credit lines 
D)  all of the above 
A)  late payments 
B)  cash advances 
C)  exceeding credit lines 
D)  all of the above

Question 2

The "Average Daily Balance Method excluding current transactions" method of computing finance charges results in the highest finance charges.

Accepted Answer

A) True 
 B)False

Question 3

Under the adjusted balance method of assessing finance charges, the finance charge is applied to

Accepted Answer

A)  the original amount billed less payments made prior to the payment date 
B)  the original amount billed without consideration to payments made prior to billing date 
C)  the original amount billed, but no including current transactions, and no consideration for the grace period 
D)  none of the above 
A)  the original amount billed less payments made prior to the payment date 
B)  the original amount billed without consideration to payments made prior to billing date 
C)  the original amount billed, but no including current transactions, and no consideration for the grace period 
D)  none of the above

Question 4

Graduated payment mortgages are better suited for young home buyers than for the elderly.

Accepted Answer

A) True 
 B)False

Question 5

Finance charges include guarantee insurance premiums.

Accepted Answer

A) True 
 B)False

Question 6

As long as a real estate loan is secured by real property, banks may lend up to 100 percent of the fair market value specified by qualified appraisers.

Accepted Answer

A) True 
 B)False

Question 7

Real Estate Investment Trusts tend to special in

Accepted Answer

A)  multi-family residential property 
B)  commercial property 
C)  hotel property 
D)  all of the above 
A)  multi-family residential property 
B)  commercial property 
C)  hotel property 
D)  all of the above

Question 8

RESPA and HUMDA are examples of variable rate mortgage loans.

Accepted Answer

A) True 
 B)False

Question 9

The law that ensures that credit is extended to creditworthy borrowers, and prohibits discrimination based on race or sex in the

Accepted Answer

A)  Truth in Lending Act 
B)  Community Reinvestment Act 
C)  Equal Credit Opportunity Act 
D)  Financial Institutions Reform, Recovery, and Enforcement Act 
A)  Truth in Lending Act 
B)  Community Reinvestment Act 
C)  Equal Credit Opportunity Act 
D)  Financial Institutions Reform, Recovery, and Enforcement Act

Question 10

The principal risks associates with real estate lending are:

Accepted Answer

A)  declining values 
B)  defaults 
C)  lack of liquidity 
D)  all of the above 
A)  declining values 
B)  defaults 
C)  lack of liquidity 
D)  all of the above

Question 11

Which of the following method for assessing finance charges results in the least cost to the borrower?

Accepted Answer

A)  adjusted balance 
B)  previous balance 
C)  average daily balance excluding current transactions 
D)  average daily balance including current transactions 
A)  adjusted balance 
B)  previous balance 
C)  average daily balance excluding current transactions 
D)  average daily balance including current transactions

Question 12

The APR can be the same as the IRR.

Accepted Answer

A) True 
 B)False

Question 13

Credit cards are not the same as debit cards or prepayment cards.

Accepted Answer

A) True 
 B)False

Question 14

Negative amortization of a mortgage loan may occur in which of the following types of mortgage loans?

Accepted Answer

A)  ARM 
B)  SAM 
C)  GPM 
D)  All of the above 
A)  ARM 
B)  SAM 
C)  GPM 
D)  All of the above

Question 15

Securitization is used exclusively for home mortgage loans.

Accepted Answer

A) True 
 B)False

Question 16

In an open-end automobile lease, the borrower assumes the risk of the residual value at the end of the lease.

Accepted Answer

A) True 
 B)False

Question 17

The Truth in Lending Act requires creditors to disclose the APR and finance charges so that borrowers can make intelligent credit decisions.

Accepted Answer

A) True 
 B)False

Question 18

Assume a single-payment $1,000 loan for one year at 16 percent. The APR is

Accepted Answer

A)  32 percent 
B)  24 percent 
C)  16 percent 
D)  none of the above 
A)  32 percent 
B)  24 percent 
C)  16 percent 
D)  none of the above

Question 19

Consumer installment loans include credit cards, automobile loans, and single payment loans.

Accepted Answer

A) True 
 B)False

Question 20

Retail banking refers to

Accepted Answer

A)  providing banking services to small and medium size firms 
B)  providing banking services to individuals and small size business concerns 
C)  providing banking services to individuals 
D)  providing services to small size businesses. 
A)  providing banking services to small and medium size firms 
B)  providing banking services to individuals and small size business concerns 
C)  providing banking services to individuals 
D)  providing services to small size businesses.

Credit card fee income comes from

The "Average Daily Balance Method excluding current transactions" method of computing finance charges results in the highest finance charges.

Under the adjusted balance method of assessing finance charges, the finance charge is applied to

Graduated payment mortgages are better suited for young home buyers than for the elderly.

Finance charges include guarantee insurance premiums.

As long as a real estate loan is secured by real property, banks may lend up to 100 percent of the fair market value specified by qualified appraisers.

Real Estate Investment Trusts tend to special in

RESPA and HUMDA are examples of variable rate mortgage loans.

The law that ensures that credit is extended to creditworthy borrowers, and prohibits discrimination based on race or sex in the

The principal risks associates with real estate lending are:

Which of the following method for assessing finance charges results in the least cost to the borrower?

The APR can be the same as the IRR.

Credit cards are not the same as debit cards or prepayment cards.

Negative amortization of a mortgage loan may occur in which of the following types of mortgage loans?

Securitization is used exclusively for home mortgage loans.

In an open-end automobile lease, the borrower assumes the risk of the residual value at the end of the lease.

The Truth in Lending Act requires creditors to disclose the APR and finance charges so that borrowers can make intelligent credit decisions.

Assume a single-payment $1,000 loan for one year at 16 percent. The APR is

Consumer installment loans include credit cards, automobile loans, and single payment loans.

Retail banking refers to

Functions and Forms of Banking

The Bank Regulatory Environment

Evaluating Bank Performance

Bank Valuation

An Overview of Assetliability Management Alm

Techniques of Assetliability Management: Futures, Options, and Swaps

Investment Management

Credit Evaluation Process

Commercial and Industrial Lending

Liquidity Management

Capital Management

Managing Liabilities

Off-Balance Sheet Activities

Securities, Investment Insurance Products

Other Financial Services

Electronic Banking

Global Financial Services

Filters

Exam 10: Real Estate and Consumer Lending

Credit card fee income comes from

The "Average Daily Balance Method excluding current transactions" method of computing finance charges results in the highest finance charges.

Under the adjusted balance method of assessing finance charges, the finance charge is applied to

Graduated payment mortgages are better suited for young home buyers than for the elderly.

Finance charges include guarantee insurance premiums.

As long as a real estate loan is secured by real property, banks may lend up to 100 percent of the fair market value specified by qualified appraisers.

Real Estate Investment Trusts tend to special in

RESPA and HUMDA are examples of variable rate mortgage loans.

The law that ensures that credit is extended to creditworthy borrowers, and prohibits discrimination based on race or sex in the

The principal risks associates with real estate lending are:

Which of the following method for assessing finance charges results in the least cost to the borrower?

The APR can be the same as the IRR.

Credit cards are not the same as debit cards or prepayment cards.

Negative amortization of a mortgage loan may occur in which of the following types of mortgage loans?

Securitization is used exclusively for home mortgage loans.

In an open-end automobile lease, the borrower assumes the risk of the residual value at the end of the lease.

The Truth in Lending Act requires creditors to disclose the APR and finance charges so that borrowers can make intelligent credit decisions.

Assume a single-payment $1,000 loan for one year at 16 percent. The APR is

Consumer installment loans include credit cards, automobile loans, and single payment loans.

Retail banking refers to

Functions and Forms of Banking

The Bank Regulatory Environment

Evaluating Bank Performance

Bank Valuation

An Overview of Assetliability Management Alm

Techniques of Assetliability Management: Futures, Options, and Swaps

Investment Management

Credit Evaluation Process

Commercial and Industrial Lending

Liquidity Management

Capital Management

Managing Liabilities

Off-Balance Sheet Activities

Securities, Investment Insurance Products

Other Financial Services

Electronic Banking

Global Financial Services

Filters