banker requires financial information to assess whether: I. The borrower can repay the loan amount II. The borrower can pay the interest III. The borrower can
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Q A banker requires financial information to assess whether:
I. The borrower can repay the loan amount
II. The borrower can pay the interest
III. The borrower can repay only the principal
IV. The borrower can pay the instalments early than the stipulated time
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Solved in 2 steps
- q11 Which of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. Investment q12 Insurance companies and brokerage houses are examples of which of the following. a. Financial instruments b. Financial institutions c. Medium of exchange d. Financial markets8- A contractual agreement in which the borrower receives something of value now and agrees to pay the lender in the future with an interest is called as. a. Credit b. Insurance c. Money d. TimeA3 Finance Q: A producer has no obligation to a consumer under the Model Regulation related to any annuity transaction A. The consumer is a friend of the producer B. No recommendation is made C. The recommendation is approved by the insurer
- QUESTION 7 Which type of short-term loan is secured with Treasury bills as collateral? A. Federal funds B. Repurchase agreements C. Commercial paper D. Certificates of depositWhich of the following is an arrangement by which one party promises to pay a sum of money to policyholder as protection against an adverse or unfavorable occurrence of event? a. Short Term Loans b. Fixed Deposit c. Insurance d. InvestmentQ. 3 Briefly explain the five (5) primary methods or models that are commonly used, by banks, to estimate the probability of default (PD) of a borrower. Your answer should also include the key element(s) (regarding their mechanics) of each of these methods.
- Required Correct Option 1- The amount which borrower has to pay to lender for taking and using his amount on total amount accumulated is called as _____________. a. Real rate of interestb. Nominal interest ratec. Nominal risk free interest rated. Compound interestAnswer true or false 1. An investors financial position will also affect his or her objectives. 2. You will incur pre-termination charges against the earnings of your time deposit if you will pull-out your investment from the bank prior to maturityEXERCISE 1Indicate whether each of the following statements is true or false. Support your answerswith the relevant explanations. A. Modigliani and Miller’s Proposition II assumes that increased borrowing doesnot affect the interest rate on the firm’s debt. (Explain your reasoning.)
- Answer the following questions correctly. a. The interest is computed on the principal and on the accumulated past interest . a. Compound Interestb. Interestc. Simple interestd. rate b. Which of the following are NOT true? I. Principal is the money given or paid invested in the origin date II. Origin date is a date on which money is paid by the borrower. III. Interest is an amount or earned for the use of the moneyIV. Simple Interest is an interest that is computed on the principal and then added to it.45.In a security agreement, the ___________is the party who owes money and the ____________is the entity who has a security interest in the collateral and has the right to be repaid -creditor; bank -trustee; loan officer -debtor; secured creditor -none of the aboveAnswer the following statements It is an average interest rate that banks offer in the financial market: a. effective rate b. Cetes c. CPP d. TIIE It is the payment for the use of someone else's money: a. simple interest b. interests c. amount d. interest rate
