QFA Loans - Sample Paper 1 verified answer
questions
A lender generally charges a lower interest rate on a housing loan
because:
A the loan is secured against the property.
B they are required to do so by the Consumer
Credit Act, 1995.
C the loan is unsecured.
D they are required to do so by the Consumer Protection Code. Correct
Answer-A
1.2 - Individual Loan Needs
Finn buys a car by taking out a Personal Payment Plan (PPP). When will
Finn be the legal owner of the car?
A As soon as the contract is signed.
B After he pays an initial deposit.
C When the final payment has been made.
D When 50% of all payments have been made. Correct Answer-C
1.2.1 Different forms of Loans
To which of the following consumers do the provisions of the Consumer
Protection Code, 2012 NOT apply?
,A Janet, who has borrowed €10,000 as a personal loan from Clear Bank.
B Jennifer, who has engaged the services of a Debt Management firm to
act on her behalf with her creditors.
C Ross, who has taken out a life assurance policy with his local Credit
Union.
D James, who has received finance under a hire-purchase agreement.
Correct Answer-D
1.6.2 Consumer Protection Code, 2012
Mary referred a complaint she had made about Delta Bank to the
Financial Services and Pensions Ombudsman (FSPO) as she was
unhappy with their final response. The FSPO upheld Mary's complaint
and awarded her compensation of €50,000. Delta Bank wish to appeal
the FSPO's decision.
Within how many days of the FSPO's decision must Delta Bank submit
their appeal to the High Court?
A 15 days
B 20 days
C 30 days
D 35 days Correct Answer-D
1.5.3.1 Financial Services and Pensions Complaints Process
Which of the following is not an element of a valid contract?
,A Consideration
B Acceptance
C Verification
D Capacity Correct Answer-C
1.7.1 Essential Elements of a Valid Contract
Philip agrees to offer West Bank collateral security against a housing
loan. This most likely means that Philip is providing:
A a third party, who will agree to make the loan repayments if he
defaults on his loan.
B a legal mortgage over the freehold property.
C a personal covenant to repay the loan.
D an assignment of a home contents insurance policy. Correct Answer-A
2.4 - Security for Housing Loans
In the early years of a loan which is arranged on a capital and interest
basis, the:
A largest part of the monthly payment is used to pay the interest charge.
B capital portion reduces quickly.
C interest portion is suspended.
D largest part of the monthly payment is used to pay off the capital sum
borrowed. Correct Answer-A
, 2.10.1 - Capital and interest
Rita holds a variable rate mortgage with Beta Bank. Beta Bank must
provide Rita with a notification advising her of any change in the
interest rate:
A as soon as the bank becomes aware that they are changing the interest
rate.
B no later than 10 business days following a change in the ECB refi rate.
C at least 20 business days in advance of any interest rate change.
D at least 30 days in advance of any interest rate change. Correct Answer-
D
2.12 Housing Loan Interest Rates
What factor(s) determine how a mortgage lender calculates their variable
mortgage interest rates?
(i) Cost of funds.(ii) Competition in the market place. (iii) Profit margin.
A (i) only.
B (i) and (ii) only.
C (i) and (iii) only.
D (i), (ii) and (iii) Correct Answer-D
2.11.1 - Standard Variable Rate
questions
A lender generally charges a lower interest rate on a housing loan
because:
A the loan is secured against the property.
B they are required to do so by the Consumer
Credit Act, 1995.
C the loan is unsecured.
D they are required to do so by the Consumer Protection Code. Correct
Answer-A
1.2 - Individual Loan Needs
Finn buys a car by taking out a Personal Payment Plan (PPP). When will
Finn be the legal owner of the car?
A As soon as the contract is signed.
B After he pays an initial deposit.
C When the final payment has been made.
D When 50% of all payments have been made. Correct Answer-C
1.2.1 Different forms of Loans
To which of the following consumers do the provisions of the Consumer
Protection Code, 2012 NOT apply?
,A Janet, who has borrowed €10,000 as a personal loan from Clear Bank.
B Jennifer, who has engaged the services of a Debt Management firm to
act on her behalf with her creditors.
C Ross, who has taken out a life assurance policy with his local Credit
Union.
D James, who has received finance under a hire-purchase agreement.
Correct Answer-D
1.6.2 Consumer Protection Code, 2012
Mary referred a complaint she had made about Delta Bank to the
Financial Services and Pensions Ombudsman (FSPO) as she was
unhappy with their final response. The FSPO upheld Mary's complaint
and awarded her compensation of €50,000. Delta Bank wish to appeal
the FSPO's decision.
Within how many days of the FSPO's decision must Delta Bank submit
their appeal to the High Court?
A 15 days
B 20 days
C 30 days
D 35 days Correct Answer-D
1.5.3.1 Financial Services and Pensions Complaints Process
Which of the following is not an element of a valid contract?
,A Consideration
B Acceptance
C Verification
D Capacity Correct Answer-C
1.7.1 Essential Elements of a Valid Contract
Philip agrees to offer West Bank collateral security against a housing
loan. This most likely means that Philip is providing:
A a third party, who will agree to make the loan repayments if he
defaults on his loan.
B a legal mortgage over the freehold property.
C a personal covenant to repay the loan.
D an assignment of a home contents insurance policy. Correct Answer-A
2.4 - Security for Housing Loans
In the early years of a loan which is arranged on a capital and interest
basis, the:
A largest part of the monthly payment is used to pay the interest charge.
B capital portion reduces quickly.
C interest portion is suspended.
D largest part of the monthly payment is used to pay off the capital sum
borrowed. Correct Answer-A
, 2.10.1 - Capital and interest
Rita holds a variable rate mortgage with Beta Bank. Beta Bank must
provide Rita with a notification advising her of any change in the
interest rate:
A as soon as the bank becomes aware that they are changing the interest
rate.
B no later than 10 business days following a change in the ECB refi rate.
C at least 20 business days in advance of any interest rate change.
D at least 30 days in advance of any interest rate change. Correct Answer-
D
2.12 Housing Loan Interest Rates
What factor(s) determine how a mortgage lender calculates their variable
mortgage interest rates?
(i) Cost of funds.(ii) Competition in the market place. (iii) Profit margin.
A (i) only.
B (i) and (ii) only.
C (i) and (iii) only.
D (i), (ii) and (iii) Correct Answer-D
2.11.1 - Standard Variable Rate
