Music Business Music
BankingBusiness Banking
and Finance and
Final Exam Finance
Complete Final
Study Guide, Practice Questions & Verified Answers (2026 Updated)
Study this set o nline at: https://www.cram.co m/flashcards/music-business-banking-
and-finance-final-5785016
T o be a wel l capi tal i zed bank under the f ederal bank, a bank must have a
T i er One Rati o
__________ of at l east 6%.
On the bank bal ance sheet the assets i ncl ude Loans, i nvestments, f ed f unds sol d, and cash
As i nterest rates ri se, bond pri ces ri se F al se (al ways an i nverse rel ati onshi p)
Banks make money by Chargi ng i nterest on l oans and f ees f or servi ces
Not a characteri sti c of the credi t underwri ti ng process T o enti rel y el i mi nate potenti al f or l oan l osses
T rue (Usual l y need three)
Al l commerci al l oans requi re a mi ni mum of two i denti f i abl e sources of repayment
E xampl es: i ncome, cash f l ow, col l ateral , personal guarantee
D oes not el i mi nate need f or good bankers
Commerci al credi t process D oes not overcome good i n/good out syndrome
Al l of the above
I n regard to ri sk versus return, the bank takes l ow ri sk or l ow return venture capi tal
T rue
i s opposi te-hi gh ri sk hi gh return
, Music Business Music
BankingBusiness Banking
and Finance and
Final Exam Finance
Complete Final
Study Guide, Practice Questions & Verified Answers (2026 Updated)
Study this set o nline at: https://www.cram.co m/flashcards/music-business-banking-
and-finance-final-5785016
1. Character
2. Capaci ty
3. Capi tal
6 Cs of credi t
4. Condi ti ons
5. Common Sense
6. Col l ateral
When obtai ni ng a commerci al l oan, a borrower shoul d provi de the bank wi th H i stori cal f i nanci al statements
Regardi ng checki ng accounts, you are l i mi ted i n amount of wi thdrawal s per month F al se
Cashi ers check f unds are guaranteed by a bank T rue - used when buyi ng a car f or cash etc
Advantages of havi ng a debi t card do not i ncl ude Buy now, pay l ater
Ski m f i shi ng and pretexti ng are al l means of i denti ty thef t T rue
T wo common consumer l oan types T erm Loan and Li ne of Credi t
T wo most i mportant f i nanci al f actors credi t bureaus use i n determi ni ng credi t
Payment hi story and amounts owed
score
BankingBusiness Banking
and Finance and
Final Exam Finance
Complete Final
Study Guide, Practice Questions & Verified Answers (2026 Updated)
Study this set o nline at: https://www.cram.co m/flashcards/music-business-banking-
and-finance-final-5785016
T o be a wel l capi tal i zed bank under the f ederal bank, a bank must have a
T i er One Rati o
__________ of at l east 6%.
On the bank bal ance sheet the assets i ncl ude Loans, i nvestments, f ed f unds sol d, and cash
As i nterest rates ri se, bond pri ces ri se F al se (al ways an i nverse rel ati onshi p)
Banks make money by Chargi ng i nterest on l oans and f ees f or servi ces
Not a characteri sti c of the credi t underwri ti ng process T o enti rel y el i mi nate potenti al f or l oan l osses
T rue (Usual l y need three)
Al l commerci al l oans requi re a mi ni mum of two i denti f i abl e sources of repayment
E xampl es: i ncome, cash f l ow, col l ateral , personal guarantee
D oes not el i mi nate need f or good bankers
Commerci al credi t process D oes not overcome good i n/good out syndrome
Al l of the above
I n regard to ri sk versus return, the bank takes l ow ri sk or l ow return venture capi tal
T rue
i s opposi te-hi gh ri sk hi gh return
, Music Business Music
BankingBusiness Banking
and Finance and
Final Exam Finance
Complete Final
Study Guide, Practice Questions & Verified Answers (2026 Updated)
Study this set o nline at: https://www.cram.co m/flashcards/music-business-banking-
and-finance-final-5785016
1. Character
2. Capaci ty
3. Capi tal
6 Cs of credi t
4. Condi ti ons
5. Common Sense
6. Col l ateral
When obtai ni ng a commerci al l oan, a borrower shoul d provi de the bank wi th H i stori cal f i nanci al statements
Regardi ng checki ng accounts, you are l i mi ted i n amount of wi thdrawal s per month F al se
Cashi ers check f unds are guaranteed by a bank T rue - used when buyi ng a car f or cash etc
Advantages of havi ng a debi t card do not i ncl ude Buy now, pay l ater
Ski m f i shi ng and pretexti ng are al l means of i denti ty thef t T rue
T wo common consumer l oan types T erm Loan and Li ne of Credi t
T wo most i mportant f i nanci al f actors credi t bureaus use i n determi ni ng credi t
Payment hi story and amounts owed
score
