Finance And Accounting

Question: Should a loan be taken out just for its tax benefits?
A
Yes, the tax benefits make any loan amount worth it

B
Yes, as long as the loan is paid back in the same year

C
No, unless the loan is for over $100,000

D
No, the benefit of deduction of loan interest does not offset the cost of the interest

Note: Answer not sure
1. Report
Question: What purpose do mortgage brokers serve?
A
They work for the bank and sell mortgages

B
They work for the borrowers, aggregating all loan options and provide the borrowers with options

C
They work for the real estate companies and sell property

D
They are the buyers of real estate

Note: Answer not sure
1. Report
Question: What options does a bank have if a company breaks a covenant?
A
None, the bank has to stick to the loan agreement

B
None, required by the IRS to not give any forgiveness

C
The bank can temporarily waive the covenants to give the borrower time to become compliant

D
The bank will permanently waive the covenants

Note: Answer not sure
1. Report
Question: How does a long term loan received in cash affect a firm's quick ratio?
A
It is not possible to say anything on the basis of the information given

B
There will be no change

C
It will decrease

D
It will increase

Note: Answer not sure
1. Report
Question: How does the payment of a short term loan affect a company's balance sheet?
A
It reduces cash and short term liabilities

B
It reduces cash and increases short term liabilities

C
It decreases short term liabilities and increases long term liabilities

D
It has no impact

Note: Answer not sure
1. Report
Question: What is an interest only loan?
A
A loan on which interest accrues only in the second year

B
A loan on which the borrower has to pay back only the interest and not the principal

C
A loan on which the borrower has to pay only the interest for a specified time period, not reducing the principal at all

D
A type of mortgage

Note: Answer not sure
1. Report
Question: What is the collateral under a mortgage loan?
A
The family automobile

B
The borrower's job

C
All the borrower's cash in the bank

D
The house which the mortgage is used to purchase

Note: Answer not sure
1. Report
Question: What does the term "Margin" mean?
A
The ratio of debt to equity

B
The claim a lender may place on property in return for making a loan

C
The amount the lender adds to the predetermined index rate of an Adjustable-Rate Loan to determine the new interest rate at each adjustment.

D
The borrowing of money

Note: Answer not sure
1. Report
Question: What is the definition of a loan?
A
A type of debt, the redistribution of assets between a borrower and a lender with a promise to repay

B
Something similar to an asset

C
Always a short term obligation to repay someone

D
The same as a draft or check

Note: Answer not sure
1. Report
Question: What is meant by the term "Assumption"?
A
Applying for a mortgage

B
A loan secured by the equity value in a borrower's home

C
The transfer of the seller's existing mortgage to the buyer

D
None of these

Note: Answer not sure
1. Report

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Question: Should a loan be taken out just for its tax benefits?

Question: What purpose do mortgage brokers serve?

Question: What options does a bank have if a company breaks a covenant?

Question: How does a long term loan received in cash affect a firm's quick ratio?

Question: How does the payment of a short term loan affect a company's balance sheet?

Question: What is an interest only loan?

Question: What is the collateral under a mortgage loan?

Question: What does the term "Margin" mean?

Question: What is the definition of a loan?

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