QFA Loans - Sample Paper 2 verified answer
questions
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:
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.
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 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.
A (ii) only.
B (i) and (ii) only.
C (ii) and (iii) only.
, D (i), (ii) and (iii). Correct Answer-C
2.10.2 - Interest only
To be eligible for a Rebuilding Ireland Homeloan:
A it is sufficient for one party in a joint application to be a first-time
buyer.
B an applicant must be in continuous employment for one year as the
primary applicant.
C a self-employed applicant must submit two years certified accounts.
D a single appliacnt must earn a minimum of €75,000 per annum.
Correct Answer-C
2.3.6 - Rebuilding Ireland Home Loan
Which of the following factors will influence a lender's decision to
change its variable mortgage interest rate:
(i) EU inflation rate.
(ii) current wholesale money market rates and the cost of the lender's
retail deposits.
(iii) lender's profit margin.
A (ii) only.
B (i) and (iii) only.
C (ii) and (iii) only.
questions
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:
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.
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 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.
A (ii) only.
B (i) and (ii) only.
C (ii) and (iii) only.
, D (i), (ii) and (iii). Correct Answer-C
2.10.2 - Interest only
To be eligible for a Rebuilding Ireland Homeloan:
A it is sufficient for one party in a joint application to be a first-time
buyer.
B an applicant must be in continuous employment for one year as the
primary applicant.
C a self-employed applicant must submit two years certified accounts.
D a single appliacnt must earn a minimum of €75,000 per annum.
Correct Answer-C
2.3.6 - Rebuilding Ireland Home Loan
Which of the following factors will influence a lender's decision to
change its variable mortgage interest rate:
(i) EU inflation rate.
(ii) current wholesale money market rates and the cost of the lender's
retail deposits.
(iii) lender's profit margin.
A (ii) only.
B (i) and (iii) only.
C (ii) and (iii) only.
