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