商业银⾏管理彼得S.罗斯英⽂原书第8版英语试题库Chap016
Chapter 16
Lending Policies and Procedures: Managing Credit Risk
Fill in the Blank Questions
1. The______________ is a uniform rating system developed by regulators where banks are given a
rating from one to five in each of six categories and an overall rating from one to five.
Answer: CAMELS
2. One of the 6 C?s of lending,______________ suggests that the lender must look at the position of
the business firm in the industry and the outlook of the industry to evaluate a loan.
Answer: condition
3. One of the 6 C?s of lending,______________ suggests that the lender must look to e if the
borrower is legally entitled to sign a binding loan agreement. For an individual this entails making sure the borrower is of legal age to sign a contract.
Answer: capacity
4. When a bank purchas a whole loan or a piece of a loan from another bank they are purchasing
what is known as a____________________________.
Answer: participation
5. Loans that have minor weakness becau the bank has not followed its written loan policy or
which have missing documentation are called______________ by regulators.
Answer: criticized
6. ____________________________ are loans extended to farmers and ranchers to assist in planting
crops, harvesting crops and to support the feeding and care of livestock.
Answer: Agriculture loans
7. ____________________________ devote the bulk of their credit portfolio to large-denomination
loans to corporations and other business and tend to be large banks.
Answer: Wholesale lenders
8. ____________________________ are loans which are cured by land buildings and other
structures. The loans can be short term construction loans or longer term loans to finance the
purcha of homes and apartments among others.
Answer: Real estate loans
9. A______________ is signed by the borrower and indicates the principal amount of the loan, the
interest rate on the loan and the terms under which repayment must take place.
Answer: Promissory note
10. ____________________________ are tho things a borrower must do. They are actions the
folkdanceborrower must take. Examples include filing periodic financial statements with the bank and
purchasing insurance on any collateral pledged.
Answer: Affirmative covenants
11. ___________________________ are when lenders extend credit to banks, insurance companies,
and finance companies among others.
Answer: Financial institution loans
12. ______________ are loans that carry a strong probability of loss to the bank.
Answer: Doubtful loans
13. A(n)______________ is the process of resolving a troubled loan so the bank can recover its funds. Answer: loan workout
14. ______________ is one of the key features of any loan. This C of lending examines whether the borrower will have enough sales or income to repay the loan.
Answer: cash
15. A bank?s__________________________________________ gives loan officers specific
guidelines in making individual loan decisions and in shaping the overall loan portfolio.
在线英语词典Answer: written loan policy
16. An approach in which the lending officer focus on changes in borrower cash flows over time is
known as the _____________ cash flow method.
Answer: direct
17. are loans granted to business to cover purchas of inventory,
paying taxes and meeting payrolls.
Answer: Commercial and industrial loans (C&I Loans)
18. include credit to finance the purcha of automobiles, mobile homes,
appliances and other retail goods and many other purchas by consumers.
Answer: Loans to individuals (consumer loans)
19. is where the lender buys equipment or vehicles and rents them to its
customers.
Answer: Lea financing receivableslha
20.Smaller banks tend to emphasize in the form of smaller denomination personal
cash loans and home mortgage loans to extended to individuals and families as well as smaller business loans. Answer: retail credit
21.The loan mix of any lending institution depends heavily on the that each loan offers
compared to all other asts the lending institution can acquire.
Answer: expected yield
22.Under the no individual can be denied credit becau of race, x,
religious affiliation, age or receipt of public assistance.
Answer: Equal Credit Opportunity Act (1974)
optimus23.One aspect of the CAMELS rating system is which looks at the quality of
英文 mp3the bank?s loans. Examiners look at all loans over a certain size and a random lection of all other loans when looking at this aspect of a bank.
Answer: ast quality
24.One part of the 6 C?s of lending is which looks at whether the borrower has a
well-defined purpo for the loan and a rious intent to repay the loan.
Answer: character
25.One of the most widely consulted sources of data on business firms is which was
founded in Philadelphia in 1914 to exchange credit information among business lending
institutions and to organize conferences and publish educational materials to train loan officers and credit analysts. Answer: Risk Management Associates (RMA)
26.One problem with the newer lending model called _________________ was found to at least
partially contribute to the recent crisis in the mortgage market.
Answer: “Streamlining”
27.In the mortgage environment of the early 2000s, lenders were encouraged to ll individual loans
and packages of loans to buy more liquid curities instead, thus shifting much of the risk of
lending to capital markets. This process is referred to as __________________.
Answer: Securitization
28.Factors such as changes in the economy, natural disasters, and regulation are referred to as
__________ factors, while management errors, illegal manipulation, and ineffective lending
policies are considered ___________ factors.
Answer: External; internal
29.In the loan workout process, the preferred option is nearly always to ek a _______________,
which gives both the lending institution and its customer the chance to restore normal operations.
Answer: Revid loan agreement
True/Fal Questions
T F 30. The principal reason banks are chartered by federal and state governments is to make loans to their customers. Answer: True
T F 31. Risk in banking tends to be concentrated in a bank?s loan portfolio.
Answer: True
T F 32. The largest banks have, on average, reduced their dependence on real estate loans relative to smaller banks. Answer: True
T F 33. Real estate lending is popular with bank, in part, due to the growth of the condary mortgag
e market. Answer: True
T F 34. Banks in the United States are, on average, examined at least once every three years.
Answer: True
T F 35. Smaller banks tend to emphasize wholesale banking rvices.
Answer: Fal
T F 36. Retail credit in banking refers to such loans as residential mortgages and installment loans to individuals. Answer: True
T F 37. Loans made by a particular bank cured by the bank?s own stock are not usually permitted except under special circumstances.
Answer: True
T F 38. Federally-supervis ed banks in the U.S. must make an “affirmative effort” to provide loans and other rvices to all credit-worthy borrowers in their chon rvice area.
Answer: True
T F 39. Loans to minors are not legally enforceable contracts in most states.
Answer: True
T F 40. The letter “C” in the CAMELS rating system for banks in the U.S. refers to the “condition”
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of a bank.
Answer: Fal
T F 41. The letter “M” in the CAMELS rating system for banks in the U.S. refers to the “management quality” of a bank. Answer: True
T F 42. The process of loan review means that a loan committee must generally approve a loan before the borrower is told the loan is approved.
Answer: Fal
T F 43. Troubled loans normally are subject to more frequent review than are sound loans.
Answer: True
T F 44. Credit card loans are generally more profitable for small and medium-size banks than for the largest banks. Answer: Fal
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T F 45. Banks should concentrate their lending on tho loans in which they have the greatest cost advantage. Answer: True
T F 46. The type of bank loan experiencing the largest loss per dollar of loan is credit card loans.
Answer: True
T F 47. Construction loans by a bank fit under the loan category known as commercial and industrial loans.
Answer: Fal
T F 48. If the economy slows down a bank should review its outstanding loans more frequently.
Answer: True
T F 49. Foreclosure on property pledged behind a bank loan does not subject a bank to liability to clean up any environmental damage the borrower may have caud to happen.
Answer: Fal
T F 50. Loans granted to business appear to convey positive information to the market place about a borrower?s credit quality, enabling a borrower to obtain more and cheaper funds
from other sources.
Answer: True
T F 51. Loans to a bank?s officers can never exceed 2.5 percent of a bank?s capital and unimpaired surplus or $25,000 whichever is larger and cannot be more than $100,000.
Answer: True
T F 52. Financial institutions that disagree with examiner classifications of their loans can appeal the examiner ratings. Answer: True
T F 53. A rating of “5”is the highest and best rating that a U.S. bank can receive under the CAMEL rating system. Answer: Fal
T F 54. Accounts receivable financing means that a bank actually takes over ownership of receivables, whereas factoring means that a bank merely lends money on a borrowing
customer?s receivables and the customer still has own ership of the receivables.
Answer: Fal
T F 55. A restriction against a borrower taking on new debt is an affirmative covenant in a loan contract.
Answer: Fal
T F 56. Loan review is considered to be a luxury, not a necessity for most banks, especially tho with sound lending policies.
Answer: Fal2020春节祝福语简短
T F 57. Cash is one of the 6 C?s of lending and refers to the fact that the lender wants to make sure the borrower has the ability to generate enough cash to repay the loan.
Answer: True
T F 58. There are three principal sources of cash to repay a loan. The are cash flows generated from sales or income, funds generated from the liquidation of asts and funds raid by
lling debt or equity curities.
contestantsAnswer: True
T F 59. Negative covenants require the borrower to take certain actions.
Answer: Fal
T F 60. Affirmative covenants restrict a borrower from doing certain things.
Answer: Fal
T F 61. For ea and convenience most banks have the loan review conducted by the same person
who makes the loan. This is particularly true of large banks.
Answer: Fal
T F 62. A loan workout is when the bank and the customer initially negotiate the terms of the loan.
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Answer: Fal
T F 63. A written loan poli cy gives loan officers and the bank?s management specific guidelines in making individual loan decisions and in forming the bank?s loan portfolio.
Answer: True
