FINA 365 UNL JINSOOK LEE EXAM
12027 WITH QUESTIONS AND
EXPERT-VERIFIED CORRECT
ANSWERS | ALREADY GRADED A+ |
GUARANTEED SUCCESS
Compared to banks and savings institutions, credit unions are able to pay a higher
rate on the deposits of members because
A) they do not issue common stock.
B) they intend to attract new members.
C) of their tax-exempt status.
D) Regulation Q still applies to the industry.
E) they are subject to the provisions of the Community Reinvestment Act. -
ANSWER-C) of their tax-exempt status.
Credit unions may be federally or state chartered. If a credit union is chartered at
the federal level, it is subject to the regulations imposed by the
A) National Credit Union Administration.
,B) Federal Credit Union Insurance Fund.
C) Federal Reserve.
D) State Banking Commission.
E) Office of the Comptroller of the Currency. - ANSWER-A) National Credit
Union Administration.
Which of the following is NOT an off-balance-sheet activity for U.S. banks?
A) Derivative contracts.
B) Loan commitments.
C) Trust services.
D) letters of credit. - ANSWER-C) Trust services
True or False? Finance companies generally charge lower interest rates on
consumer loans than do depository institutions. - ANSWER-False
True or False? Because finance companies do not accept deposits, they do not have
bank regulators providing oversight of their activities. - ANSWER-True
True or False? Major finance companies did not suffer as much from the recent
financial crisis as depository institutions primarily because they are forbidden from
creating home mortgages. - ANSWER-False
What is the primary function of finance companies?
A) Assist in the trading of securities in the secondary markets.
B) Make loans to both individuals and corporations.
C) Protect individuals and corporations from adverse events.
D) Extend loans to banks and other financial institutions.
, E) Pool the financial resources of individuals and companies and invest in
diversified portfolios of assets. - ANSWER-B) Make loans to both individuals and
corporations.
Finance companies have enjoyed very high rates of growth because they
A) charge higher rates on lower risk loans.
B) do not have ties or affiliations with manufacturing firms.
C) are willing to lend to riskier customers than commercial banks.
D) do not sell the loans that they originate.
E) face very high levels of regulation, which assures their success. - ANSWER-C)
are willing to lend to riskier customers than commercial banks.
This type of finance company competes directly with depository institutions for
consumer loans because they can frequently process loans faster and more
conveniently.
A) Sales finance institution.
B) Factoring company.
C) Personal credit institution.
D) Lease finance company.
E) Business credit institution. - ANSWER-A) Sales finance institution.
Factoring involves
A) purchasing of accounts receivable by finance company from corporate
customers.
B) Factoring involves approving of collateral that depository institutions do not
find acceptable.
C) providing financing for the purchase of products manufactured by the parent
company.
12027 WITH QUESTIONS AND
EXPERT-VERIFIED CORRECT
ANSWERS | ALREADY GRADED A+ |
GUARANTEED SUCCESS
Compared to banks and savings institutions, credit unions are able to pay a higher
rate on the deposits of members because
A) they do not issue common stock.
B) they intend to attract new members.
C) of their tax-exempt status.
D) Regulation Q still applies to the industry.
E) they are subject to the provisions of the Community Reinvestment Act. -
ANSWER-C) of their tax-exempt status.
Credit unions may be federally or state chartered. If a credit union is chartered at
the federal level, it is subject to the regulations imposed by the
A) National Credit Union Administration.
,B) Federal Credit Union Insurance Fund.
C) Federal Reserve.
D) State Banking Commission.
E) Office of the Comptroller of the Currency. - ANSWER-A) National Credit
Union Administration.
Which of the following is NOT an off-balance-sheet activity for U.S. banks?
A) Derivative contracts.
B) Loan commitments.
C) Trust services.
D) letters of credit. - ANSWER-C) Trust services
True or False? Finance companies generally charge lower interest rates on
consumer loans than do depository institutions. - ANSWER-False
True or False? Because finance companies do not accept deposits, they do not have
bank regulators providing oversight of their activities. - ANSWER-True
True or False? Major finance companies did not suffer as much from the recent
financial crisis as depository institutions primarily because they are forbidden from
creating home mortgages. - ANSWER-False
What is the primary function of finance companies?
A) Assist in the trading of securities in the secondary markets.
B) Make loans to both individuals and corporations.
C) Protect individuals and corporations from adverse events.
D) Extend loans to banks and other financial institutions.
, E) Pool the financial resources of individuals and companies and invest in
diversified portfolios of assets. - ANSWER-B) Make loans to both individuals and
corporations.
Finance companies have enjoyed very high rates of growth because they
A) charge higher rates on lower risk loans.
B) do not have ties or affiliations with manufacturing firms.
C) are willing to lend to riskier customers than commercial banks.
D) do not sell the loans that they originate.
E) face very high levels of regulation, which assures their success. - ANSWER-C)
are willing to lend to riskier customers than commercial banks.
This type of finance company competes directly with depository institutions for
consumer loans because they can frequently process loans faster and more
conveniently.
A) Sales finance institution.
B) Factoring company.
C) Personal credit institution.
D) Lease finance company.
E) Business credit institution. - ANSWER-A) Sales finance institution.
Factoring involves
A) purchasing of accounts receivable by finance company from corporate
customers.
B) Factoring involves approving of collateral that depository institutions do not
find acceptable.
C) providing financing for the purchase of products manufactured by the parent
company.
