QFA
QFA LOANS - SAMPLE PAPER 2 EXAM QUESTIONS AND ANSWERS
A lifetime loan is where:
A a property is jointly owned by the lender and
borrower.
B the loan is repaid from the sale proceeds of the
property.
C the borrower pays a notional rent for use of the
property during their lifetime.
D a property is sold to the financial institution at a
discounted value by a borrower in arrears. - correct answer B
1.2.1 - Different forms of loans
A hire purchase agreement is where a consumer:
,QFA
A purchases goods now from a retailer with the aid of a
loan provided by a finance company.
B agrees to hire goods from a finance company over a
particular period by paying a monthly fee, and must
return the goods to the finance company at the end of
the specified time.
C agrees to hire goods from a finance company over a
particular period with the goods transferring
automatically to the consumer at the end of the period.
D agrees to hire goods from a finance company over a
particular period with the option to purchase at the end
of the period. - correct answer D
1.2.2 - Different forms of loan
The Financial Services and Pensions Ombudsman
CANNOT in any circumstances investigate complaints
about a regulated financial services provider received
from:
A an individual who has a complaint relating to a matter
which occurred more than three years ago.
,QFA
B a limited company with a turnover under €3 million.
C an individual who has not gone through the internal
complaints procedure of the financial services provider.
D a charity, club or partnership. - correct answer C
1.5.3 - Financial Services Ombudsman complaints
process.
Under the Family Home Protection Act, 1976, whose
interest is primarily protected?
A A non-owning spouse.
B The mortgage lender.
C A registered property owner.
D The children of the registered property owner. - correct
answer A
1.6.5 - Family Home Protection Act,1976
John is offered a housing loan by Nore Bank whereby
interest only is payable for the first three years, after
, QFA
which John will have to make capital and interest
payments.
John is at increased risk of negative equity during the first
three years because:
A interest rates could rise during this period.
B interest rates could fall during this period.
C John's net income will fall at the end of this period.
D no capital is repaid during this period. - correct answer D
2.10.2 - Interest only
Which of the following statements about Pension
Mortgages are accurate?
(i) No payments are made to the pension policy
throughout the term of the agreement.
(ii) Interest only repayments are made to the mortgage
during the term of the agreement.
(iii) There is a risk that the value of the pension policy will
not be sufficient to clear the outstanding capital on the
expiry date of the mortgage.
QFA LOANS - SAMPLE PAPER 2 EXAM QUESTIONS AND ANSWERS
A lifetime loan is where:
A a property is jointly owned by the lender and
borrower.
B the loan is repaid from the sale proceeds of the
property.
C the borrower pays a notional rent for use of the
property during their lifetime.
D a property is sold to the financial institution at a
discounted value by a borrower in arrears. - correct answer B
1.2.1 - Different forms of loans
A hire purchase agreement is where a consumer:
,QFA
A purchases goods now from a retailer with the aid of a
loan provided by a finance company.
B agrees to hire goods from a finance company over a
particular period by paying a monthly fee, and must
return the goods to the finance company at the end of
the specified time.
C agrees to hire goods from a finance company over a
particular period with the goods transferring
automatically to the consumer at the end of the period.
D agrees to hire goods from a finance company over a
particular period with the option to purchase at the end
of the period. - correct answer D
1.2.2 - Different forms of loan
The Financial Services and Pensions Ombudsman
CANNOT in any circumstances investigate complaints
about a regulated financial services provider received
from:
A an individual who has a complaint relating to a matter
which occurred more than three years ago.
,QFA
B a limited company with a turnover under €3 million.
C an individual who has not gone through the internal
complaints procedure of the financial services provider.
D a charity, club or partnership. - correct answer C
1.5.3 - Financial Services Ombudsman complaints
process.
Under the Family Home Protection Act, 1976, whose
interest is primarily protected?
A A non-owning spouse.
B The mortgage lender.
C A registered property owner.
D The children of the registered property owner. - correct
answer A
1.6.5 - Family Home Protection Act,1976
John is offered a housing loan by Nore Bank whereby
interest only is payable for the first three years, after
, QFA
which John will have to make capital and interest
payments.
John is at increased risk of negative equity during the first
three years because:
A interest rates could rise during this period.
B interest rates could fall during this period.
C John's net income will fall at the end of this period.
D no capital is repaid during this period. - correct answer D
2.10.2 - Interest only
Which of the following statements about Pension
Mortgages are accurate?
(i) No payments are made to the pension policy
throughout the term of the agreement.
(ii) Interest only repayments are made to the mortgage
during the term of the agreement.
(iii) There is a risk that the value of the pension policy will
not be sufficient to clear the outstanding capital on the
expiry date of the mortgage.
