MBA CHAPTER 14 TEST QUESTIONS AND ANSWERS ALL CORRECT
4 views 0 purchase
Course
MBA
Institution
MBA
MBA CHAPTER 14 TEST QUESTIONS AND ANSWERS ALL CORRECT
What is Regulatory Forbearance? - Answer- A policy not to close economically insolvent FI's, allowing them to continue operation
What is the QTL Test? - Answer- Qualified thrift lender test that sets a floor on the mortgage-related assets...
MBA CHAPTER 14 TEST QUESTIONS
AND ANSWERS ALL CORRECT
What is Regulatory Forbearance? - Answer- A policy not to close economically insolvent
FI's, allowing them to continue operation
What is the QTL Test? - Answer- Qualified thrift lender test that sets a floor on the
mortgage-related assets that thrifts can hold (Currently 65 percent)
What are Mutual Organization - Answer- An institution in which the liability holders are
also the owners - for example, in a mutual savings bank, depositors also own the bank
What are Sales Finance Institutions? - Answer- Finance companies, specializing in
loans to customers of a particular retailer or manufacturer
Personal Credit Institutions - Answer- Finance companies specializing in installment and
other loans to consumers
What are Business credit institutions - Answer- finance companies specializing in
business loans
Factoring Process - Answer- The process of purchasing accounts receivable from
corporations (often at a discount), usually with no recourse to the seller should the
receivables go bad
What are Captive Finance Companies? - Answer- A finance company wholly owned by
a parent company
Define Subprime lender - Answer- a finance company that lends to high-risk customers
Who are loan sharks - Answer- Subprime lenders that charge unfairly exorbitant rates to
desperate, subprime borrowers
Define home equity loans - Answer- Loans that let customers borrow on a line of credit
secured with a second mortgage on their home
What are securitized mortgage assets - Answer- Mortgages packaged and used as
assets backing secondary market securities
, What is Mortgage Servicing - Answer- A fee-related business whereby the flow of
mortgage repayments is collected and passed on to investors in whole mortgage loan
packages or securitization vehicles
Of all the depository institutions, as a percentage of assets, credit unions rely the most
on deposit sources of funds.
True False - Answer- True
The policy employed in the 1980s of not closing economically insolvent savings
institutions was called regulatory forbearance.
True False - Answer- True
After deposits, the second largest source of funds at savings institutions is FHLB loans.
True False - Answer- True
Savings institutions must have at least 65 percent of their assets in mortgage-related
areas in order to maintain their favorable tax status and obtain FHLB loans.
True False - Answer- True
In a mutual organization, the depositors are owners of the institution.
True False - Answer- True
Traditionally, most credit union members had a common employer, but increasingly the
required commonality is a common location of either residence or workplace.
True False - Answer- True
Savings institution deposits and bank deposits are backed by two different insurance
funds.
True False - Answer- False
Credit unions are not taxed and, as a result, well-run credit unions are often able to
charge lower loan rates and pay slightly higher deposit rates than banks.
True False - Answer- True
The benefits of buying summaries with Stuvia:
Guaranteed quality through customer reviews
Stuvia customers have reviewed more than 700,000 summaries. This how you know that you are buying the best documents.
Quick and easy check-out
You can quickly pay through credit card or Stuvia-credit for the summaries. There is no membership needed.
Focus on what matters
Your fellow students write the study notes themselves, which is why the documents are always reliable and up-to-date. This ensures you quickly get to the core!
Frequently asked questions
What do I get when I buy this document?
You get a PDF, available immediately after your purchase. The purchased document is accessible anytime, anywhere and indefinitely through your profile.
Satisfaction guarantee: how does it work?
Our satisfaction guarantee ensures that you always find a study document that suits you well. You fill out a form, and our customer service team takes care of the rest.
Who am I buying these notes from?
Stuvia is a marketplace, so you are not buying this document from us, but from seller Scholarsstudyguide. Stuvia facilitates payment to the seller.
Will I be stuck with a subscription?
No, you only buy these notes for $12.99. You're not tied to anything after your purchase.
