Question 1

The prime rate is the interest rate banks offer their best quality customers.

Accepted Answer

A) True 
 B)False

Question 2

Because the cost of equity does not represent a direct interest expense, it should be excluded when pricing loans.

Accepted Answer

A) True 
 B)False

Question 3

The CRA requires lenders

Accepted Answer

A)  to make loans based on the creditworthiness of the borrower 
B)  the explain to borrowers the credit terms 
C)  to serve the credit needs of the local communities they serve in a safe and sound fashion 
D)  to publish their borrowing and lending rates in their loan agreements 
A)  to make loans based on the creditworthiness of the borrower 
B)  the explain to borrowers the credit terms 
C)  to serve the credit needs of the local communities they serve in a safe and sound fashion 
D)  to publish their borrowing and lending rates in their loan agreements

Question 4

Loans that are used to fill a gap in the time until a specific event occurs are called

Accepted Answer

A)  evergreen facilities 
B)  bridge loans. 
C)  floor plans. 
D)  term loans 
A)  evergreen facilities 
B)  bridge loans. 
C)  floor plans. 
D)  term loans

Question 5

A Chattel mortgage give a lender a lien against tangible real property.

Accepted Answer

A) True 
 B)False

Question 6

The prohibition of a borrower from paying cash dividends is an example of an affirmative covenant.

Accepted Answer

A) True 
 B)False

Question 7

Small banks can participate in loans far in excess of their asset size by

Accepted Answer

A)  buying financial futures contracts 
B)  buying participations 
C)  achieving economies of scope 
D)  by selling loans downstream 
A)  buying financial futures contracts 
B)  buying participations 
C)  achieving economies of scope 
D)  by selling loans downstream

Question 8

Commercial loan agreements should contain which of the following:

Accepted Answer

A)  means of repayment 
B)  representations 
C)  fees and charges 
D)  all of the above 
A)  means of repayment 
B)  representations 
C)  fees and charges 
D)  all of the above

Question 9

Commercial and Industrial loans are used primarily to finance working capital and other needs of businesses.

Accepted Answer

A) True 
 B)False

The prime rate is the interest rate banks offer their best quality customers.

Because the cost of equity does not represent a direct interest expense, it should be excluded when pricing loans.

The CRA requires lenders

Loans that are used to fill a gap in the time until a specific event occurs are called

A Chattel mortgage give a lender a lien against tangible real property.

The prohibition of a borrower from paying cash dividends is an example of an affirmative covenant.

Small banks can participate in loans far in excess of their asset size by

Commercial loan agreements should contain which of the following:

Commercial and Industrial loans are used primarily to finance working capital and other needs of businesses.

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

Real Estate and Consumer 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 9: Commercial and Industrial Lending

The prime rate is the interest rate banks offer their best quality customers.

Because the cost of equity does not represent a direct interest expense, it should be excluded when pricing loans.

The CRA requires lenders

Loans that are used to fill a gap in the time until a specific event occurs are called

A Chattel mortgage give a lender a lien against tangible real property.

The prohibition of a borrower from paying cash dividends is an example of an affirmative covenant.

Small banks can participate in loans far in excess of their asset size by

Commercial loan agreements should contain which of the following:

Commercial and Industrial loans are used primarily to finance working capital and other needs of businesses.

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

Real Estate and Consumer Lending

Liquidity Management

Capital Management

Managing Liabilities

Off-Balance Sheet Activities

Securities, Investment Insurance Products

Other Financial Services

Electronic Banking

Global Financial Services

Filters