CEC CERTIFICATION EXAM

Your manager has asked you to prepare an analysis for a borrowing request at Your Bank. Which of the following tasks are you most likely to complete first? a. Prepare a term sheet b. Create a projection c. Analyze the company's available collateral d. Evaluate the company's business strategy - Answer-D You are calling for the first time on the owner of a successful local business that currently banks with another bank in your market. You are very interested in developing a banking relationship with the business and its owner. Which of the following goals will be most important to achieve in the initial meeting? a. Obtain a commitment from the owner to open a checking account at your bank. b. Offer a term sheet outlining a loan at a competitive rate. c. Learn about the owner's business and personal objectives. d. Gather the most recent financial statements on the business. - Answer-C Gruper Home Appliances, Inc., a manufacturer of kitchen appliances, sells 70% of its goods to X-Mart, a large national retailer of consumer durables. Which of the following best describes the reason why Gruper has a low degree of bargaining power with X-Mart? a. There are no substitutes for the product b. The suppliers have high variable costs c. Customers have brand loyalty d. Sales are concentrated with a large volume buyer - Answer-D