Collateral is a valuable asset that is pledged to ensure loan payments. If you fail to repay the loan, the creditor may take your pledged asset. True False 身

Q: Moral hazard or its reduction explain the following except: O A. Collateral requirements for loans.…

A: A moral hazard is the concept that a party who is protected from risk in some way will behave…

Q: If, after collateral is repossessed and sold, there is money left over (a surplus), that money…

A: People raised funds from the financial institution and for that loan to be secured, financial…

Q: Why lenders assume no risk in granting loan to the government though the return of this type of loan…

A: Loans are raised by governments to meet the financing requirements of the country.

Q: Which one of the following statements regarding the loans market is false? a) The principal-agent…

A: Please see the next step for the Answer

Q: secured line of credit: Select one: a. is backed up by pledged assets b. is not backed up by pledge…

A: At the time of providing the facility of the line of credit, the financial institution has…

Q: What is the status of a lender on collateral if they fail to perfect their security interest? What…

A: A security interest in an asset that cannot be claimed by any other party is called a perfected…

Q: Which of the following is true of an unsecured loan? A. They are exclusively for cars, houses, and…

A: Loan can be defined as money that somebody lends other person in exchange of some interest that is…

Q: All are items that can minimise credit risk, except. Guarantor  Mortagage Collateral  Pledge

A: The chance of a loss stemming from a borrower's failure to repay a loan or satisfy contractual…

Q: Most lenders do not require collateral for short-term financing.; True or False

A: Collateral refers to something that is pledged in order to repay a loan and which can be forfeited…

Q: In hedging, interest rate swap (IRS) can be used to hedge against rising rates, falling rates,…

A: Hedging is a technique or a strategy which is used to reduce any risk involved in investment. This…

Q: Describe some of the motives and mistakes made by the mortgage securitizers?

A: To market as well as attract borrowers for lenders.Evaluation of the borrower's credit…

Q: Many types of debt including auto loans, student loans and credit debt are securitized. The…

A: Securitization is the procedure where an issuer designs a marketable financial instruments by…

Q: Explain why it's possible for tranching to make invest ing in a mortgage -backed security more risky…

A: A mortgage-backed security is a type of security which is backed up by mortgage meaning failing to…

Q: Collateral does not reduce the risk of a loan per se, because A. it is not part of the loan…

A: Collateral = It refers to asset, being pledged by bank against the loan given to its customer in…

Q: Both are estimated liabilities, but customer loyalty programs are different from warranties because…

A: As per IFRS 115 "Revenue from contracts wih customer" Customer loyalty programs includes the…

Q: What contingencies are commonly found in permanent or take-out loan commitments? Why are they used?…

A: The contingencies found in permanent or take-out loan commitments and their use are as follows: A…

Q: There is a formula that will find the APR, i, of a single payment loan but not for a series of…

A: The term “annual percentage rate (APR)” refers to the annual rate of interest charged to borrowers…

Q: As long as you have a strong reason for taking a loan, there is no need to understand the terms of…

A: Understanding the terms in a loan agreement is vital. Loan agreements are an critical a part of…

Q: Explain further the effects/impacts of default on asset-backed security (ABS) to the financial…

A: The question is based on the concept of asset-backed security (ABS). ABS is a financial instrument…

Q: What does a proper loan structure accomplish for the borrower and the lender?   A. Supports…

A: The term "loan structure" describes the range of options available to a lender when giving credit to…

Q: Your company provides credit to customers. Someof these customers default on their loans, with…

A: Discriminant analysis is the analysis which provide the permission to organization in determining…

Q: the event of difficulty in recovering the funds advanced, claim the monies back from the borrower,…

A: A loan is an instrument which is used to raise money. So a borrower can raise money at a defined…

Q: Why would lenders, in general, tend to set loan maturities (not amortization, but when the loan…

A: Loan Maturity: The time period for which a loan is extended is known as the loan period.  The date…

Q: he purpose of the inflation premium is to maintain the purchasing power of money while it is loaned…

A: a) An inflation premium is added to interest rates for compensating for expected inflation by…

Q: Related to ethics and contracts, why do payday loans appear to be an ethical issue?

A: Payday loans are small ticket loans for a short duration. The borrower pays back the loan when he…

Q: Why can’t bank lend without a written loan policy? Explain in detail.

A: Lending procedure: There are certain steps that are followed in the procedure. this includes the…

Q: Describe some of the motives and mistakes made by the mortgageoriginators?

A: The mortgage broker did not fix a target. Without a clear aim for the year, couriers can transfer…

Q: Explain how an installment loan differs from revolving credit in terms of risk and the nature of the…

A: Installment credit is a type of loan in which the borrower receives a defined, or limited, sum of…

Q: 2. Substantial amount of credit losses is due to poor loan monitoring. In view of this, suggest how…

A: Loan is when the funds are given to some other party in an exchange regarding the repayment of the…

Q: how collateralized mortgage obligations (CMOs) help to alleviate some of the reinvestment and…

A: Mortgage is a type of debt instrument which is generally secured by collateral. A borrower has to…

Q: Which of the following statements is false?   A.   Asset-backed securities (ABS) may be backed by…

A: A financial asset-backed securities (ABS) is a form of financial investment that is backed by a pool…

Q: True or false?  Interest received on loans made to borrowers is an example of an investing activity.

A: The investing activities of the cash flow statement record the amount incurred for purchasing the…

Q: Risk mitigation tools used specifically by secured lenders are least likely to include detailed…

A: The question is based on the concept of credit assessment and credit risk management. The credit…

Q: What are the stages and processes for resolving bad loans? note: include a reference

A: Bad Loans: When a loan made by a bank cannot be recovered, either partially or fully, it is termed a…

Q: The borrowing base used to guarantee collateral on an operating line of credit is highly dependent…

A: Borrowing base means the maximum amount that a borrower can borrow from a lender. Any excess of…

Q: What are the major flaws with NPV? What are the major flaws with IRR? If you are going to a bank and…

A: Major flaws with NPV:Requires an assumption of discount rate which is not directly observable in the…

Q: Substitute of term loan facility is O Financial guarantee O Performance guarantee O Personal…

A: Term loan is a loan which is given by a bank to the borrower for longer periods usually more than a…

Q: When loans are obtained from the bank or lending institutions, the accounts receivable may be…

A: Loan means the amount taken from another person to be repaid back with interest.

Q: How does a short term loan works?

A: Definition : A short term loan is a variety of loan that's obtained to support a short lived…

Q: Collateral security is used by the lender when interest is not paid on time the loan is not repaid…

A: Collateral is type of a security that the borrower gives to the lender as a security the loan taken.…

Q: Question 5: Collateral is a valuable asset that is pledged to ensure loan payments. If you fail to…

A: Collateral is an asset which is pledged by the borrower to the lender to give a security to the…