Exam 18: Consumer Loans, Credit Cards, and Real Estate Lending

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Bill Wells uses his Discover card to buy new furniture for his apartment.The interest rate on this card is 18 percent and the minimum payment that is due is $100.Which of the following categories will this loan fall into?

(Multiple Choice)

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Question 41

Unlike the APR method for calculating consumer loan rates,the simple interest approach adjusts for the length of time a borrower actually has use of the credit.

(True/False)

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(65)

Question 42

In lending,ARM is an abbreviation used for:

(Multiple Choice)

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Question 43

According to the textbook,credit card loans tend to have the highest interest rates of all consumer loans.

(True/False)

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Question 44

Michelle Woods,a 64 year old retired professor,has applied for a home equity loan from a bank in her neighborhood.The bank structured a loan against her property in a manner that she receives $5,000 every month.This is an example of:

(Multiple Choice)

4.9/5

(85)

Question 45

Mark Green is considering buying a new Honda Accord. The purchase price of the car is $21,000 but Mark has a trade-in worth $4,500. Mark needs a loan to buy the car and knows that his local bank requires him to put down 10 percent of the purchase price after the value of the trade-in is considered. Mark also knows that bank will charge 8 percent for the loan and require monthly payments over the next 4 years. -What is the size of Mark's monthly payments if he makes the minimum down payment on the car?

(Multiple Choice)

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(66)

Question 46

According to the text,which of the following appears to be the most important factor used in the FICO credit scoring system?

(Multiple Choice)

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(78)

Question 47

Which of the following regulations requires lending institutions to delineate the trade territory it plans to serve and to offer all of its services without discrimination to all the residents in that particular trade territory?

(Multiple Choice)

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(72)

Question 48

________________________ are plastic cards that can be used to pay for goods and services but where credit is not extended.They are a convenient way to make deposits into and withdrawals from an ATM.

(Short Answer)

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(77)

Question 49

Donna Carlon is using her plastic card to buy groceries.The money is taken from her checking account immediately to pay for her groceries.How is Donna using her card?

(Multiple Choice)

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(68)

Question 50

Short-term to medium-term loans repayable in two or more consecutive payments are known as:

(Multiple Choice)

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(74)

Question 51

According to the textbook,new car loans have a lower interest rate than used car loans.

(True/False)

4.8/5

(75)

Question 52

According to the text,which of the following types of loan has the highest interest rate?

(Multiple Choice)

4.9/5

(78)

Question 53

The Equal Credit Opportunity Act requires that:

(Multiple Choice)

4.9/5

(65)

Question 54

Consumer loans tend to be _____________________ sensitive.They tend to rise in periods of economic expansion and tend to fall in periods of economic downturn.

(Short Answer)

4.9/5

(77)

Question 55

A ____________ uses an average of a debtor's last six months of gross income to determine whether an applicant must file for bankruptcy under chapter 7 or 13 of the bankruptcy code.

(Multiple Choice)

4.9/5

(82)

Question 56

Which of the following aspects of a customer's loan application should a bank's real estate loan officer consider carefully when making a home mortgage?

(Multiple Choice)

5.0/5

(75)

Question 57

Jeremiah Uselton needs a loan to purchase a condo in Sarasota,Florida.Which of the following categories will this loan fall into?

(Multiple Choice)

4.9/5

(72)

Question 58

Which of the following is the principal risk faced by a home equity lender?

(Multiple Choice)

4.7/5

(79)

Question 59

Under FNMA rules for buying home mortgages,FNMA does not purchase a borrower's mortgage if the borrower's credit report is more than 45 days old.

(True/False)

4.9/5

(79)

Question 60

Showing 41 - 60 of 155

Bill Wells uses his Discover card to buy new furniture for his apartment.The interest rate on this card is 18 percent and the minimum payment that is due is $100.Which of the following categories will this loan fall into?

Unlike the APR method for calculating consumer loan rates,the simple interest approach adjusts for the length of time a borrower actually has use of the credit.

In lending,ARM is an abbreviation used for:

According to the textbook,credit card loans tend to have the highest interest rates of all consumer loans.

Michelle Woods,a 64 year old retired professor,has applied for a home equity loan from a bank in her neighborhood.The bank structured a loan against her property in a manner that she receives $5,000 every month.This is an example of:

According to the text,which of the following appears to be the most important factor used in the FICO credit scoring system?

Which of the following regulations requires lending institutions to delineate the trade territory it plans to serve and to offer all of its services without discrimination to all the residents in that particular trade territory?

________________________ are plastic cards that can be used to pay for goods and services but where credit is not extended.They are a convenient way to make deposits into and withdrawals from an ATM.

Donna Carlon is using her plastic card to buy groceries.The money is taken from her checking account immediately to pay for her groceries.How is Donna using her card?

Short-term to medium-term loans repayable in two or more consecutive payments are known as:

According to the textbook,new car loans have a lower interest rate than used car loans.

According to the text,which of the following types of loan has the highest interest rate?

The Equal Credit Opportunity Act requires that:

Consumer loans tend to be _____________________ sensitive.They tend to rise in periods of economic expansion and tend to fall in periods of economic downturn.

A ____________ uses an average of a debtor's last six months of gross income to determine whether an applicant must file for bankruptcy under chapter 7 or 13 of the bankruptcy code.

Which of the following aspects of a customer's loan application should a bank's real estate loan officer consider carefully when making a home mortgage?

Jeremiah Uselton needs a loan to purchase a condo in Sarasota,Florida.Which of the following categories will this loan fall into?

Which of the following is the principal risk faced by a home equity lender?

Under FNMA rules for buying home mortgages,FNMA does not purchase a borrower's mortgage if the borrower's credit report is more than 45 days old.

An Overview of the Changing Financial-Services Sector

The Impact of Government Policy and Regulation on the Financial-Services Industry

The Organization and Structure of Banking and the Financial-Services Industry

Establishing New Banks, Branches, ATMs, Telephone Services, and Websites

The Financial Statements of Banks and Their Principal Competitors

Measuring and Evaluating the Performance of Banks and Their Principal Competitors

Risk Management for Changing Interest Rates: Asset-Liability Management and Duration Techniques

Investment Banking,Insurance,and Other Sources of Fee Income

Risk Management: Asset-Backed Securities, Loan Sales, Credit Standbys, and Credit Derivatives

The Investment Function in Financial-Services Management

Liquidity and Reserves Management: Strategies and Policies

Managing and Pricing Deposit Services

Managing Nondeposit Liabilities

Investment Banking, insurance, and Other Sources of Fee Income

The Management of Capital

Lending Policies and Procedures: Managing Credit Risk

Lending to Business Firms and Pricing Business Loans

Acquisitions and Mergers in Financial-Services Management

International Banking and the Future of Banking and Financial Services

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