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- Bank Muscat advances secured and unsecured loans to their customers. If Bank Muscat is issuing secured loans, identify which one of the following is the reason for bank to issue secured loan? a. To increase interest on loans by the banks b. To sell the collateral in the event of non-refund of the loan c. To have long standing relationship with customer d. To reduce the loan amount and time periodLoans backed by a simple promise to repay are known as _____ loans. open-end credit revolving credit securedu nsecuredMoney Management. What happens when a student loans defaults?
- The interest rate that banks provide to the customers for the savings deposit account is more than current deposit account but less than: a. Overdraft account b. Savings deposit account c. Flexible account d. Fixed deposit accountWhich of the following is not a way in which banks lend short-term unsecured loans? a. Through a guaranteed credit line that has a commitment fee for any unused amount for the year b. Through credits cards lines with a certain credit limit c. By sending the amount earned from trust and investment products offered by the bank d. By lending a single date maturity loan to a debtorThe two types of personal loans are installment loans and demand loans. True or false
- Going to a bank and applying for a mortgage loan would be an example of what type of financing? Group of answer choices Equity Financing Debt Financing Liquidiity Financing Abraham LincolnCustomer loans are classified on a Depository Institution (DI)'s balance sheet as Select one: A. liabilities, because the customer may default on the loan. B. assets, because the DI earns servicing fees on the loan. C. assets, because the DI's major asset is its client base. D. assets, because DIs originate and monitor loan portfolios. E. liabilities, because the DI must transfer funds to the borrower at the initiation of the loan.Bank rates on credit card balances are usually similar to the rate charged on business loans. Group of answer choices: True False
- 1. if a small bank lends to a customer who wants a mortgage that is too large for the small bank to hold on its' balance sheet, which of the following can the small bank do to assist in this lending? a. engage in a participation b. pass- through the mortgage payments c sell part of the loan through correspondent banking d. make a no-recourse loan.You can obtain expensive loans from Select one: a. chartered banks and credit unions. b. banks through credit cards. c. parents or family members. d. finance companies and retailers.Your company provides credit to customers. Someof these customers default on their loans, with verynegative implications for you. Describe how you coulduse discriminant analysis to learn what distinguishesthe customers who default on their loans from thosewho pay back their loans. How might you use such amodel?