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1. Typically, loan examiners place adversely class...




1. Typically, loan examiners place adversely classified loans into three categories. Loans in which the margin of protection is inadequate due to weaknesses in collateral or in the borrower's repayment abilities are categorized as: A. substandard loans. B. loss loans. C. doubtful loans. D. unproductive loans. E. bad loans. 2. A good collateral for the purpose of protecting a lender should be: A. durable. B. easy to identify. C. marketable. D. stable in value. E. All the options are qualities of a good collateral. 3. A written document in which a lender promises to make credit available to a borrower, over a designated future period, up to a maximum amount in return for a commitment fee is known as a(n): A. negative covenant. B. loan guarantee agreement. C. loan policy agreement. D. loan commitment agreement. E. affirmative covenant. 4. A project loan granted on its own merits and which does not have a sponsor to guarantee the loan is known as a project loan granted on: A. recourse basis. B. resort basis. C. nonrecourse basis. D. sponsorship basis. E. leverage basis. 5. Which of the following is an important asset-based balance sheet composition ratio? A. Notes payable/Total liabilities and net worth B. Gross profit/Sales C. Net operating profit/Total assets D. Inventories/Total assets E. Net income after taxes/Total assets 6. Which of following contingent liabilities may be required to be recorded on a balance sheet and not to be hidden as a footnote? A. Environmental liabilities B. Limiting regulations C. Unfunded pension liabilities D. Litigation or pending lawsuits against firms E. Underfunded pension liabilities 7. According to a proposal under Dodd-Frank Wall Street Reform and Consumer Protection Act, lenders who are pooling and securitizing the mortgage loans they create and then selling them off should remain responsible for at least: A. 10 percent of market risk attached to these loans. B. 5 percent of market risk attached to these loans. C. 10 percent of credit risk attached to these loans. D. 5 percent of credit risk attached to these loans. E. 50 percent of the credit risk attached to these loans. 8. The net effect of the new code under Bankruptcy Abuse Prevention and Consumer Protection Act, 2005 has generally been to make filing for bankruptcy: A. more expensive and time consuming. B. less expensive and seamless. C. easier for home owners. D. paperless and completely online. E. easier for corporations. 9. 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. A. ways test B. means test C. income test D. feasibility test E. bankruptcy test 10. A bankruptcy filing usually remains in the credit report of the filer for up to: A. 2 years. B. 5 years. C. 10 years. D. 20 years. E. the individual's life.


Paper#6851 | Written in 18-Jul-2015

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