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Test your basic knowledge |
Loan Operations Vocab
Start Test
Study First
Subject
:
personal-finance
Instructions:
Answer 34 questions in 15 minutes.
If you are not ready to take this test, you can
study here
.
Match each statement with the correct term.
Don't refresh. All questions and answers are randomly picked and ordered every time you load a test.
This is a study tool. The 3 wrong answers for each question are randomly chosen from answers to other questions. So, you might find at times the answers obvious, but you will see it re-enforces your understanding as you take the test each time.
1. Individuals and families normally follow well-defined ______ patterns
lifecycle
simple interest
MCIF
attachment
2. When notifying a consumer that the loan request has been declined - lenders strive to retain the consumer's ________ by - for example - offering or recommending financial counseling services
simple interest
article 9
goodwill
TILA
3. A credit history that shows a lot of recent activity and increased debt could indicate that the applicant has _____ debt.
legal lending limits
generate applications
stocks - bonds
pyramid
4. Bank ______ __ ______ apply to the total lending relationship with a borrowerm not just a single loan
MCIF
perfect
legal lending limits
increases
5. For ____ programs - the bank identifies minimum acceptable credit requirements and ha potential applicants evaluated against those requirements.
lifecycle
goodwill
simple interest
prescreening
6. ____ of the Uniform Commercial Code governs most loans secured by personal property.
prescreening
article 9
increases
goodwill
7. Compare to other direct loan products - marketing efforts for open-end loans can reach a ______ market area
lifecycle
generate applications
broader
education
8. To attain the objective of ______ and ____ document preparation - most banks use automated systems
garnishment
active duty
efficient - accurate
finance charge
9. The applicant's nomthly debt payments related to income determines the ____ _ ____ ratio - which is a key element in measuring capacity.
loan review
TILA
active duty
debt-to-income
10. The ________ function in the loan operations department ensures insurance documentation is obtained.
debt-to-income
loan review
broader
lifecycle
11. Current quotes from a broker or newspaper - such as the Wall Street Journal - are a good source for verifying the value of _____ and ____.
attachment
stocks - bonds
account monitoring
variable rate
12. A wage _______ requires an employer to send a certain percentage of the employee's wages directly to the bank until the debt is paid in full
character
finance charge
broader
garnishment
13. To recuce interest-rate risk - many banks try to maintain a portfolio of ______ loans
education
variable rate
perfect
broader
14. The C of credit called ______ addresses the kind of person the applicant is and what his or her primary behavior patterns are.
character
simple interest
garnishment
broader
15. The act that lists the type of disclosures that lenders must make in advertising programs and when a loan application is taken.
TILA
simple interest
education
foreclosure
16. The interest income on a closed-end consumer loan _____ as the term extends
charged off
increases
perfect
court/public
17. _____ are the largest providers of consumer credit information to the banking industry
stocks - bonds
capital
consumer reporting agenies
TILA
18. Credit info on judgments - bankruptcies - and liens recorded is usually obtained from ___ records
character
loan review
lifecycle
court/public
19. The first objective of the loan application process
generate applications
foreclosure
prescreening
increases
20. The difference between gross loss and net loss is the amount recovered from consumers after the loans have been _____ __.
increases
capital
charged off
pyramid
21. _____ is the most common method of computing the interest earned on a consumer loan
simple interest
MCIF
account monitoring
red flags
22. A lender making a secured loan covered by the UCC first needs to create a valid ______ on the property that is to serve as collateral.
red flags
education
charged off
attachment
23. Fling a financing statement with the appropriate legal authority is one way to _____ a lien
simple interest
active duty
perfect
charged off
24. According to the Truth in Lending Act - the ______ ___ is the interest plus any other charges deemed by the act to be part of the cost of credit.
highest - lowest
finance charge
red flags
loan loss
25. _______ ______ contracts and ______ ______ agreements incur risk - because if the event stipulate in the contract occurs - the bank must pay off the loan or assume the payments.
debt cancellation - debt suspension
prescreening
generate applications
loan review
26. College fairs are a good place for lenders to sell these kind of loans
TILA
education
lifecycle
highest - lowest
27. Coverae under the Servicemembers Civil Relief Act starts on the date the servicemember recieves _____ ______
active duty
loan loss
red flags
highest - lowest
28. ___ is the forced sale of real estate to satisfy a debt
broader
court/public
variable rate
foreclosure
29. Generally - unsecured loans tend to have the _____ delinquency rates - whereas loans secured by the borrower's home tend to have the ______ delinquency rates
charged off
red flags
debt-to-income
highest - lowest
30. For ______ _____ programs - the bank runs the names of its current customers against a consumer reporting agency's files - using defined criteria to identify positive or negative trends.
prescreening
attachment
account monitoring
simple interest
31. Characteristics that may indicate a problem on an application are called __ ___
pyramid
capital
red flags
character
32. ____ is the net value of an applicant's assets.
debt-to-income
broader
capital
account monitoring
33. A database containing detailed info about consumers and prospects that is used for marketing purposes is the ______
simple interest
consumer reporting agenies
MCIF
charged off
34. The ______ ratio is a cost factor that represents the bank's loss experience on its consumer credit products over time
active duty
court/public
pyramid
loan loss