Banking and Finance Quiz

The First State Bank of Duncan buys railroad cars and rents them to the Santa Fe Railroad Company. What type of credit service has this bank made?

• Financial leasing service

• Loan to an individual

• Financial institution loan

• Commercial and industrial loan

You borrowed $10.000 for a year with a loan fee of $100 and interest totaling $900. Your finance charge will be:

• $100

• $800

• $1000

• $10.900

The…………. the uses and the sources of funds held by the bank on a given date.

• Report of Condition

• Report of Income

• Report of Cash flow

• Notes to financial statement

...................is financial institution's bad-debt reserve, as reported on its balance sheet. Correspondingly, an expense item on a bank's Report of Income designed to shelter a bank's current earning from taxes and help prepare for bad loan is called........

• Provision for possible loan losses/Allowance loan loss

• Allowance loan loss /Provision for possible loan losses

• Reserve Requirements/Provision for possible loan losses

• Allowance loan loss/Net non-interest expense

The most common sources that lenders look to for repayment of business loans include all of the following except:

• The borrower's cash flow

• Assets pledged as collateral

• Relatives of the borrower

• The borrowers net worth

................refers to the delivery of services by a bank to individual consumers rather than to companies other banks.

• Minority bank

• Commercial bank

• Retail bank

• Saving bank

In Vietnamese banking system, …….. is established by the Government and operate not for profit to implement the socio-economic policies

• Representative Offices of Foreign Bank

• State-owned Commercial Bank

• Policy bank

A bank's……………gives loan officers specific guidelines in making individual loan decisions and in shaping the overall loan portfolio.

• Loan Application

• Written loan policy

• Financial statement

• Loan Commitment Agreement

Which of the following NOT accurately describes the banks non-interest income?

• Fees for transactions deposit

• Fees for valuation of mortgage assets

• Fees for issuing limited-life preferred stock

• Fees for issuing guarantee letter

How much interest will be earned in the third year if $20,000 is deposited in three years with APR at 6.9% an interest compounded annually?

• $1,577.01

• $2,855.22

• $4,432.23

• $7,287.45