PRINCIPLES OF BANKING TEST PAPER ANSWERS
AND QUESTIONS SET A+
✔✔Education Loan - ✔✔Which of the following loans is normally unsecured?
✔✔Working Capital Loan - ✔✔What type of commercial loan is appropriate for a
business that needs funds soon and plans to repay the loan within three months?
✔✔Redlining - ✔✔Discriminating against prospective borrowers because of where they
live is known as:
✔✔Capital - ✔✔Which of the Five Cs of Credit is usually viewed as a secondary source
of repayment?
✔✔Approving lending authority for bank loan officers - ✔✔Which of the following is the
responsibility of a bank board of directors?
✔✔Regulation O - ✔✔Which of the following Federal Reserve regulations imposes
restrictions on lending to bank insiders?
✔✔Whole Life Insurance - ✔✔What life insurance plan has a savings element?
✔✔Future Value - ✔✔What is the worth of money or assets currently in hand if left to
grow at a given rate?
✔✔Government Bonds - ✔✔Which of the following is considered a low-risk investment?
✔✔Title Insurance - ✔✔What kind of insurance protects home buyers from loss when
property ownership is questioned?
✔✔Liquidity - ✔✔What is the ability to quickly convert an asset to cash?
✔✔Gaming history - ✔✔Which of the following is NOT an objective factor in risk level
choice?
AND QUESTIONS SET A+
✔✔Education Loan - ✔✔Which of the following loans is normally unsecured?
✔✔Working Capital Loan - ✔✔What type of commercial loan is appropriate for a
business that needs funds soon and plans to repay the loan within three months?
✔✔Redlining - ✔✔Discriminating against prospective borrowers because of where they
live is known as:
✔✔Capital - ✔✔Which of the Five Cs of Credit is usually viewed as a secondary source
of repayment?
✔✔Approving lending authority for bank loan officers - ✔✔Which of the following is the
responsibility of a bank board of directors?
✔✔Regulation O - ✔✔Which of the following Federal Reserve regulations imposes
restrictions on lending to bank insiders?
✔✔Whole Life Insurance - ✔✔What life insurance plan has a savings element?
✔✔Future Value - ✔✔What is the worth of money or assets currently in hand if left to
grow at a given rate?
✔✔Government Bonds - ✔✔Which of the following is considered a low-risk investment?
✔✔Title Insurance - ✔✔What kind of insurance protects home buyers from loss when
property ownership is questioned?
✔✔Liquidity - ✔✔What is the ability to quickly convert an asset to cash?
✔✔Gaming history - ✔✔Which of the following is NOT an objective factor in risk level
choice?