CONTENT OUTLINE;
COLLECTIONS, ASSETS AND PORTFOLIO MANAGEMENT
Question 1
Portfolio management is important because: Select all that apply
Select one or more:
a. portfolio data assists lessors in understanding a transaction's information.
b. managing the performance of the portfolio helps lessors to maintain existing funding
source relationships and access additional funding sources.
c. using portfolio metrics to look at segmentation and concentration helps lessors remain
aware of exposure in any certain industry, region, state, etc.
d. the data helps lessors understand the impact of changes to its credit window, which also
helps to manage the credit policy and validate the effectiveness of it over time.
CORRECT ANSWER
Answer:
managing the performance of the portfolio helps lessors to maintain existing funding source
relationships and access additional funding sources., the data helps lessors understand the
impact of changes to its credit window, which also helps to manage the credit policy and
validate the effectiveness of it over time., using portfolio metrics to look at segmentation
and concentration helps lessors remain aware of exposure in any certain industry, region,
state, etc.
1
@THE STUDY VAULT
,Question 2
An equipment finance company must ensure that its portfolio is profitable; that it is
financeable through available means; and that the overall operation is sustainable over
the long run. Simply put, management should originate only those leases that contribute
to __________.
Select one:
a. the lessees' goals
b. the company's goals
c. the public's goals.
d. the industry's goals
CORRECT ANSWER
Answer:
the company's goals
Question 3
What is portfolio management?
Select one:
a. Portfolio management is the one-time process of evaluating the nature and performance
of the portfolio of leases to allow management to determine future underwriting
adjustments, current loss reserves, and strategic planning.
b. Portfolio management is the yearly process of evaluating the nature and performance of
the portfolio of leases to allow lessees to determine future underwriting adjustments,
current loss reserves, and strategic planning.
c. Portfolio management is the continuous process of evaluating the nature and
performance of the portfolio of leases to allow management to determine future
underwriting adjustments, current loss reserves, and strategic planning.
2
@THE STUDY VAULT
, d. Portfolio management is the continuous process of reviewing the nature and performance
of the portfolio of leases, for informational purposes only.
CORRECT ANSWER
Answer:
Portfolio management is the continuous process of evaluating the nature and performance
of the portfolio of leases to allow management to determine future underwriting
adjustments, current loss reserves, and strategic planning.
Question 4
In a broader sense, what is the difference between a policy and a procedure?
Select one:
a. A policy should define "what" an organization does and "how" it accomplishes these tasks,
and each procedure should detail "when" the organization accomplishes these tasks and
standards.
b. A policy should define "what" an organization does, and each procedure should detail
"how" the organization accomplishes these tasks and standards.
c. A procedure should define "what" an organization does, and each policy should detail
"how" the organization accomplishes these tasks and standards.
d. There is no substantive difference between a policy and a procedure.
CORRECT ANSWER
Answer:
A policy should define "what" an organization does, and each procedure should detail "how"
the organization accomplishes these tasks and standards.
Question 5
3
@THE STUDY VAULT
COLLECTIONS, ASSETS AND PORTFOLIO MANAGEMENT
Question 1
Portfolio management is important because: Select all that apply
Select one or more:
a. portfolio data assists lessors in understanding a transaction's information.
b. managing the performance of the portfolio helps lessors to maintain existing funding
source relationships and access additional funding sources.
c. using portfolio metrics to look at segmentation and concentration helps lessors remain
aware of exposure in any certain industry, region, state, etc.
d. the data helps lessors understand the impact of changes to its credit window, which also
helps to manage the credit policy and validate the effectiveness of it over time.
CORRECT ANSWER
Answer:
managing the performance of the portfolio helps lessors to maintain existing funding source
relationships and access additional funding sources., the data helps lessors understand the
impact of changes to its credit window, which also helps to manage the credit policy and
validate the effectiveness of it over time., using portfolio metrics to look at segmentation
and concentration helps lessors remain aware of exposure in any certain industry, region,
state, etc.
1
@THE STUDY VAULT
,Question 2
An equipment finance company must ensure that its portfolio is profitable; that it is
financeable through available means; and that the overall operation is sustainable over
the long run. Simply put, management should originate only those leases that contribute
to __________.
Select one:
a. the lessees' goals
b. the company's goals
c. the public's goals.
d. the industry's goals
CORRECT ANSWER
Answer:
the company's goals
Question 3
What is portfolio management?
Select one:
a. Portfolio management is the one-time process of evaluating the nature and performance
of the portfolio of leases to allow management to determine future underwriting
adjustments, current loss reserves, and strategic planning.
b. Portfolio management is the yearly process of evaluating the nature and performance of
the portfolio of leases to allow lessees to determine future underwriting adjustments,
current loss reserves, and strategic planning.
c. Portfolio management is the continuous process of evaluating the nature and
performance of the portfolio of leases to allow management to determine future
underwriting adjustments, current loss reserves, and strategic planning.
2
@THE STUDY VAULT
, d. Portfolio management is the continuous process of reviewing the nature and performance
of the portfolio of leases, for informational purposes only.
CORRECT ANSWER
Answer:
Portfolio management is the continuous process of evaluating the nature and performance
of the portfolio of leases to allow management to determine future underwriting
adjustments, current loss reserves, and strategic planning.
Question 4
In a broader sense, what is the difference between a policy and a procedure?
Select one:
a. A policy should define "what" an organization does and "how" it accomplishes these tasks,
and each procedure should detail "when" the organization accomplishes these tasks and
standards.
b. A policy should define "what" an organization does, and each procedure should detail
"how" the organization accomplishes these tasks and standards.
c. A procedure should define "what" an organization does, and each policy should detail
"how" the organization accomplishes these tasks and standards.
d. There is no substantive difference between a policy and a procedure.
CORRECT ANSWER
Answer:
A policy should define "what" an organization does, and each procedure should detail "how"
the organization accomplishes these tasks and standards.
Question 5
3
@THE STUDY VAULT
