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

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The Truth-in-Lending Act of 1968 gave consumers the right to access the information from their credit files kept at local and regional credit bureaus.

(True/False)

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Question 101

______________________________________ is a practice of granting loans to weaker borrowers and charging them excessive fees and interest rates,increasing their risk of default.

(Short Answer)

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(76)

Question 102

The ___________________________________ Act prevents banks from redlining of certain neighborhoods and refusing to provide loans and other services in those areas.

(Short Answer)

4.8/5

(87)

Question 103

An abusive practice in which lenders grant loans to weak borrowers and charge them high fees and interest rates,which may cause the borrower to default on the loan is known as:

(Multiple Choice)

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(94)

Question 104

A bank customer is granted credit for a $2,000 loan at 10 percent to be repaid in 12 equal installments.If the loan is a discount loan,what is the monthly payment?

(Multiple Choice)

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(79)

Question 105

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

(Multiple Choice)

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Question 106

Nonresidential consumer loans include credit to finance the purchase of home appliances.

(True/False)

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Question 107

A(n)______________________ is a credit-rating agency that keeps records of borrowers' loan payment histories.

(Short Answer)

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(85)

Question 108

A popular prepaid card which carry balances that can be spent electronically in stores until the balance entered on the card is fully used up,often used like a credit card,especially popular in Europe,is known as a _________ card.

(Short Answer)

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(84)

Question 109

A bankruptcy filing usually remains in the credit report of the filer for up to:

(Multiple Choice)

4.8/5

(76)

Question 110

A customer wants to borrow $125,000 to purchase a new home.The APR on this loan is 10 percent and it is a 30-year mortgage with monthly payments.What is the monthly payment the customer will have to make on this loan?

(Multiple Choice)

4.8/5

(78)

Question 111

Household borrowings tend to be relatively interest ______________________ by nature,that is,consumers are more concerned about the size of the debt repayments than the interest rate charged.

(Short Answer)

4.9/5

(76)

Question 112

Shorter-term cash loans to consumers are normally secured,but longer-term consumer loans are usually unsecured.

(True/False)

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(84)

Question 113

Beverly Frickerson asks for a $15,000 loan for one year.The bank tells her that it will give her $13,050 and deduct $1,950 in interest upfront.What is the effective rate of interest on this loan?

(Multiple Choice)

4.9/5

(68)

Question 114

In real estate lending,competent property __________________ is vitally important to a loan decision.The value and condition of the property are determined by an independent party.These must conform to industry and government standards.

(Short Answer)

4.8/5

(75)

Question 115

FNMA purchases home mortgages only if the borrower's monthly house payment does not exceed 35 percent of his monthly gross income.

(True/False)

4.9/5

(82)

Question 116

Which of the following makes the most amount of credit card loans in the United States?

(Multiple Choice)

4.8/5

(72)

Question 117

A customer wants to borrow $1,200 from Edmond State Bank.Edmond State Bank has an add-on loan with an interest rate of 12 percent and monthly payments for one year.What are the monthly payments this customer will need to make on this loan?

(Multiple Choice)

4.8/5

(89)

Question 118

The net effect of the new code under Bankruptcy Abuse Prevention and Consumer Protection Act,2005 has generally been to make filing for bankruptcy:

(Multiple Choice)

4.9/5

(83)

Question 119

Which of the following is a challenge in making a consumer loan?

(Multiple Choice)

4.8/5

(81)

Question 120

Showing 101 - 120 of 155

The Truth-in-Lending Act of 1968 gave consumers the right to access the information from their credit files kept at local and regional credit bureaus.

______________________________________ is a practice of granting loans to weaker borrowers and charging them excessive fees and interest rates,increasing their risk of default.

The ___________________________________ Act prevents banks from redlining of certain neighborhoods and refusing to provide loans and other services in those areas.

An abusive practice in which lenders grant loans to weak borrowers and charge them high fees and interest rates,which may cause the borrower to default on the loan is known as:

A bank customer is granted credit for a $2,000 loan at 10 percent to be repaid in 12 equal installments.If the loan is a discount loan,what is the monthly payment?

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

Nonresidential consumer loans include credit to finance the purchase of home appliances.

A(n)______________________ is a credit-rating agency that keeps records of borrowers' loan payment histories.

A popular prepaid card which carry balances that can be spent electronically in stores until the balance entered on the card is fully used up,often used like a credit card,especially popular in Europe,is known as a _________ card.

A bankruptcy filing usually remains in the credit report of the filer for up to:

A customer wants to borrow $125,000 to purchase a new home.The APR on this loan is 10 percent and it is a 30-year mortgage with monthly payments.What is the monthly payment the customer will have to make on this loan?

Household borrowings tend to be relatively interest ______________________ by nature,that is,consumers are more concerned about the size of the debt repayments than the interest rate charged.

Shorter-term cash loans to consumers are normally secured,but longer-term consumer loans are usually unsecured.

Beverly Frickerson asks for a $15,000 loan for one year.The bank tells her that it will give her $13,050 and deduct $1,950 in interest upfront.What is the effective rate of interest on this loan?

In real estate lending,competent property __________________ is vitally important to a loan decision.The value and condition of the property are determined by an independent party.These must conform to industry and government standards.

FNMA purchases home mortgages only if the borrower's monthly house payment does not exceed 35 percent of his monthly gross income.

Which of the following makes the most amount of credit card loans in the United States?

A customer wants to borrow $1,200 from Edmond State Bank.Edmond State Bank has an add-on loan with an interest rate of 12 percent and monthly payments for one year.What are the monthly payments this customer will need to make on this loan?

The net effect of the new code under Bankruptcy Abuse Prevention and Consumer Protection Act,2005 has generally been to make filing for bankruptcy:

Which of the following is a challenge in making a consumer loan?

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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