Chapter 17
Multiple Choice Questions
ANSWER:1-5: 6-10:
11-15: 16-20:
21-25:
1. Short-term lending to support the construction of homes, apartments, office buildings, shopping centers, and other permanent structures is known as a (or an):
A) Self-liquidating
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B) Working capital loan
C) Interim construction loan
D) Ast-bad loan
E) None of the above
2. A loan who principal is not due to be paid back until the loan's term ends and in which only interest is paid periodically during the life of the loan is called a (or an):
A) Working capital loan
B) Project loan
C) Bullet loan
D) Interim construction loan
E) None of the above
3. When analyzing a commercial loan credit request, which of the following statements is (are) correct?
A) The lender should evaluate the potential income available to rvice the loan.
B) The lender should evaluate the potential cash flow available to rvice the loan.
C) The lender should be certain that the loan is adequate to meet the needs of the borrower.
D) A and B
E) B and C
4. The most common sources that lenders look to for repayment of business loans include all of the following except:
A) The borrower's cash flow
B) Asts pledged as collateral
C) Relatives of the borrowe.
D) The borrowers net worth
E) None of the above
5. Recent federal guidelines put in place by the Federal Deposit Insurance Corporation require banks to develop written procedures to protect against loss from environmental damage. The procedures are known as the:
A) Lender Protection Program
B) Environmental Risk Asssment Program
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C) Lender Liability Security Program
D) Environmental Pollution Control Program
E) None of the above.
6. A bank wants to examine whether the borrower can rai cash in a timely fashion to pay bills that are coming due. This bank would most likely examine which of the following categories of ratios?
校本研修个人总结
A) Customer's Control over Expens
B) Customer's Liquidity
C) Customer's Operating Efficiency
乌尔禾魔鬼城 D) Customer's Profitability
E) None of the Above
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7. Credit is extended to a company up to one year to purcha raw materials and cover a asonal peak need for cash. What type of loan is this?
A) Self-liquidating inventory loan
B) Working capital loan
C) Security dealer financing
D) Revolving line of credit
汉族服饰特点E) None of the above
8. A business receives a three year line of credit against which it can borrow, repay and borrow again if necessary during the loan's three year term. What type of loan is this?
A) Self-liquidating inventory loan
B) Working capital loan
C) Security dealer financing
D) Revolving line of credit
E) None of the above
9. A bank that is examining the ratio of total liabilities to total asts is examining which category of ratios?
A) Expen Control Measures
B) Operating Efficiency Measures
C) Coverage Measures
D) Liquidity Measures
E) Leverage Measures
11. Which dimension of a business firm's financial and operating performance would unfunded pension liabilities fit best?
A) Profitability measure
B) Market indicator
表达雪景的诗句 C) Contingent liability
D) Marketability of the product or rvice
E) None of the above
12. The business loan pricing method that includes the nonfunds operating costs of making a loan plus the bank's desired profit margin is:
A) The Cost-Plus Loan-Pricing Method 蒹葭读音
B) The Price Leadership Model
C) The Markup Model
D) Customer Profitability Analysis
E) None of the above
13. Which of the following is a weakness of the price leadership loan pricing method?
A) It does not consider the marginal cost of raising funds
B) It does not give much regard for the competition from other lenders
C) The bank must know what their costs are in order to make correctly price loans
D) The bank must consider the revenues and expens from all of the bank's dealings with the customer
E) None of the above
14. Which of the following is a strength of the customer profitability analysis method for pricing loans?
A) It considers the competition from other lenders
B) It allows the bank to compete more aggressively with the commercial paper market
C) It considers the cost of loanable funds and the operating costs of running the bank
