Finance And Accounting

Question: Why is interest earned on a loan considered taxable revenue?
A
Because it is revenue only if over $1,000

B
Because it was earned legally and therefore must be included in revenue

C
Because the SEC requires it

D
Because interest is profit generated by providing a loan and is income to the lender

Note: Answer not sure
1. Report
Question: When can interest paid be deducted on a tax return?
A
In the year the loan was taken out

B
In the year the final payment on the loan is made

C
It is not allowed to be deducted at all

D
In the year the interest is paid

Note: Answer not sure
1. Report
Question: What is the payment of the monthly installment by the borrower to the lender called?
A
Servicing

B
Liability

C
Financing

D
Bond payment

Note: Answer not sure
1. Report
Question: What is an unsecured loan?
A
An automobile loan

B
A loan where the debtor's credit is the only thing at stake

C
A loan only for uneducated people

D
A loan with no collateral; the lender has no assets backing the loan

Note: Answer not sure
1. Report
Question: What does the term "Deferment" denote?
A
The process of researching loan options

B
The process of applying for government mortgage funding

C
An approved temporary suspension of loan payments based on certain events and criteria

D
Adding interest that has accrued onto the principal balance

Note: Answer not sure
1. Report
Question: What does the term "Endowment" mean?
A
The percentage of gross monthly income that goes towards paying housing expenses

B
A fund that contains assets the use of which is restricted only to the income earned by these assets

C
The same as an escrow account

D
The process of applying for a mortgage

Note: Answer not sure
1. Report
Question: What can a lender do if a borrower refuses to pay back a loan?
A
Nothing — it is a risk the lender takes for high returns

B
Sue the borrower in a small claims court

C
Call the bank that helped structure the loan

D
A loan is a debt contract, and the borrower can be sued for the funds

Note: Answer not sure
1. Report
Question: How do lenders abuse people who are looking to get their homes refinanced?
A
They buy their homes from them

B
They refinance people for minimal interest rate improvements, while charging excessive fees for their services

C
They force them to take out home refinance loans against their will

D
They increase people's interest rates instead of lowering them

Note: Answer not sure
1. Report
Question: What is meant by Housing Expense Ratio?
A
The same as income to debt ratio

B
The percentage of living expenses to housing expenses

C
The percentage of monthly income that goes towards the housing payment

D
The ratio of the house price to those of other similar houses

Note: Answer not sure
1. Report
Question: Why is the repayment of a loan not considered income to the lender?
A
Because it only converts assets from receivables into cash

B
Because the amount is too small to impact tax collections

C
Because it is too complicated to track

D
Because there is no set law about how to handle it

Note: Answer not sure
1. Report

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Question: Why is interest earned on a loan considered taxable revenue?

Question: When can interest paid be deducted on a tax return?

Question: What is the payment of the monthly installment by the borrower to the lender called?

Question: What is an unsecured loan?

Question: What does the term "Deferment" denote?

Question: What does the term "Endowment" mean?

Question: What can a lender do if a borrower refuses to pay back a loan?

Question: How do lenders abuse people who are looking to get their homes refinanced?

Question: What is meant by Housing Expense Ratio?

Question: Why is the repayment of a loan not considered income to the lender?