SUBJECTS
|
BROWSE
|
CAREER CENTER
|
POPULAR
|
JOIN
|
LOGIN
Business Skills
|
Soft Skills
|
Basic Literacy
|
Certifications
About
|
Help
|
Privacy
|
Terms
|
Email
Search
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. The interest income on a closed-end consumer loan _____ as the term extends
perfect
generate applications
increases
capital
2. 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
garnishment
active duty
loan loss
account monitoring
3. _____ are the largest providers of consumer credit information to the banking industry
article 9
debt cancellation - debt suspension
broader
consumer reporting agenies
4. A database containing detailed info about consumers and prospects that is used for marketing purposes is the ______
MCIF
article 9
debt-to-income
debt cancellation - debt suspension
5. Compare to other direct loan products - marketing efforts for open-end loans can reach a ______ market area
broader
prescreening
active duty
red flags
6. ____ of the Uniform Commercial Code governs most loans secured by personal property.
loan review
account monitoring
goodwill
article 9
7. The ________ function in the loan operations department ensures insurance documentation is obtained.
prescreening
generate applications
loan review
increases
8. Current quotes from a broker or newspaper - such as the Wall Street Journal - are a good source for verifying the value of _____ and ____.
variable rate
loan review
attachment
stocks - bonds
9. To recuce interest-rate risk - many banks try to maintain a portfolio of ______ loans
variable rate
increases
garnishment
debt cancellation - debt suspension
10. College fairs are a good place for lenders to sell these kind of loans
goodwill
highest - lowest
education
court/public
11. The ______ ratio is a cost factor that represents the bank's loss experience on its consumer credit products over time
account monitoring
loan loss
variable rate
article 9
12. For ____ programs - the bank identifies minimum acceptable credit requirements and ha potential applicants evaluated against those requirements.
stocks - bonds
red flags
character
prescreening
13. Characteristics that may indicate a problem on an application are called __ ___
finance charge
foreclosure
red flags
lifecycle
14. Individuals and families normally follow well-defined ______ patterns
prescreening
court/public
lifecycle
foreclosure
15. The act that lists the type of disclosures that lenders must make in advertising programs and when a loan application is taken.
prescreening
lifecycle
perfect
TILA
16. 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.
simple interest
increases
attachment
variable rate
17. Coverae under the Servicemembers Civil Relief Act starts on the date the servicemember recieves _____ ______
account monitoring
education
lifecycle
active duty
18. ____ is the net value of an applicant's assets.
account monitoring
attachment
loan loss
capital
19. _______ ______ 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.
capital
court/public
red flags
debt cancellation - debt suspension
20. 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.
finance charge
loan loss
increases
article 9
21. The applicant's nomthly debt payments related to income determines the ____ _ ____ ratio - which is a key element in measuring capacity.
debt-to-income
debt cancellation - debt suspension
education
charged off
22. Fling a financing statement with the appropriate legal authority is one way to _____ a lien
prescreening
active duty
court/public
perfect
23. To attain the objective of ______ and ____ document preparation - most banks use automated systems
education
perfect
lifecycle
efficient - accurate
24. Generally - unsecured loans tend to have the _____ delinquency rates - whereas loans secured by the borrower's home tend to have the ______ delinquency rates
increases
highest - lowest
legal lending limits
generate applications
25. 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.
foreclosure
account monitoring
simple interest
perfect
26. _____ is the most common method of computing the interest earned on a consumer loan
simple interest
legal lending limits
account monitoring
garnishment
27. The C of credit called ______ addresses the kind of person the applicant is and what his or her primary behavior patterns are.
perfect
garnishment
character
increases
28. A credit history that shows a lot of recent activity and increased debt could indicate that the applicant has _____ debt.
variable rate
prescreening
pyramid
account monitoring
29. Credit info on judgments - bankruptcies - and liens recorded is usually obtained from ___ records
red flags
stocks - bonds
loan review
court/public
30. ___ is the forced sale of real estate to satisfy a debt
charged off
increases
foreclosure
loan review
31. The difference between gross loss and net loss is the amount recovered from consumers after the loans have been _____ __.
charged off
article 9
foreclosure
efficient - accurate
32. Bank ______ __ ______ apply to the total lending relationship with a borrowerm not just a single loan
loan review
legal lending limits
capital
active duty
33. 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
character
goodwill
MCIF
capital
34. The first objective of the loan application process
court/public
debt cancellation - debt suspension
TILA
generate applications