Lending Practices and Loans, Finance And Accounting

Question: What are low interest loans offered by schools to the neediest students called?
A
Beneficiary Loans

B
Fair Market Loans

C
Trustee Loans

D
Perkins Loans

Note: Answer not sure
1. Report
Question: What purpose does a title serve?
A
It is required by the mortgagee

B
It is the legal document showing the ownership of the property

C
It lists out the interest rate of the mortgage

D
None of these

Note: Answer not sure
1. Report
Question: What is meant by a secured loan?
A
A loan which uses some form of collateral as a guarantee of payment

B
A loan under $10,000

C
A loan for people with bad credit

D
A short term loan for less than a year

Note: Answer not sure
1. Report
Question: What is a 'custom loan repayment schedule'?
A
Payments which are large initially but become smaller over time

B
Paying interest only for several years, then increasing the payment to repay the principal as well

C
The making of the scheduled monthly payments to the lender by the borrower

D
One large payment at a predetermined time

Note: Answer not sure
1. Report
Question: What does the term "Flipping" denote?
A
A fee charged for the use of money

B
Buying expensive properties and renting them out

C
Buying undervalued properties and renting them out

D
The process of buying a property and then attempting to sell it relatively quickly for a profit

Note: Answer not sure
1. Report
Question: Why is interest paid by the borrower deductible on their tax return?
A
Because interest paid represents the cost of having a loan and is an expense to the borrower

B
Because it is revenue to the lender and should be income as well to the borrower

C
Because it is unfair for the borrower to have this deduction

D
Because the SEC requires it

Note: Answer not sure
1. Report
Question: What is meant by the term "Usury"?
A
Charging people a fair market interest rate based on their credit

B
Charging people zero interest rate

C
Financing a car using an auto loan

D
Charging interest rates in excess of what is standard and customary

Note: Answer not sure
1. Report
Question: What would the entry be for a monthly interest payment on a long term loan?
A
Dr: Interest Expense, Cr: Cash

B
Dr: Cash, Cr: Interest Expense

C
Dr: Long Term Liability, Cr: Interest Expense

D
Dr: Interest Expense, Cr: Long Term Liability

Note: Answer not sure
1. Report
Question: What is the purpose of covenants?
A
They are required by law to be placed on all borrowers

B
To force a borrower to abide by rules which compel the borrower to stay in a situation where they can repay the loan

C
The IRS forces the lenders to place them on all commercial loans

D
To protect the borrower

Note: Answer not sure
1. Report
Question: What is a loan that has a fixed rate of interest over a period of time known as?
A
Coupon Payment Loan

B
Conforming Mortgage loan

C
Balloon Loan

D
Term Loan

Note: Answer not sure
1. Report

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Question: What are low interest loans offered by schools to the neediest students called?

Question: What purpose does a title serve?

Question: What is meant by a secured loan?

Question: What is a 'custom loan repayment schedule'?

Question: What does the term "Flipping" denote?

Question: Why is interest paid by the borrower deductible on their tax return?

Question: What is meant by the term "Usury"?

Question: What would the entry be for a monthly interest payment on a long term loan?

Question: What is the purpose of covenants?

Question: What is a loan that has a fixed rate of interest over a period of time known as?