Question

1.

____ is the ratio of total loan amount by the total value of the property.

Select one:

a. housing-to-income-ratio

b. loan-to-value ratio

c. debt-to-income ratio

d. liability-to-market value ratio

2.

The five C s of credit stands for:

Select one:

a. capacity, character, conditions, collateral, and capital.

b. capability, cooperation, creativity, collateral, and capital.

c. conditions, competence, capital, conditions, and capacity.

d. cooperation, capacity, collateral, creativity, and conditions.

3.

Non-depository institutions that lend funds to individuals to finance consumer purchases and to businesses to finance inventories, accounts receivables and to purchase equipment as well as real estate are called

Select one:

a. factoring companies.

b. finance companies.

c. financial holding companies.

d. pension companies.

4.

To prevent the sale of insurance to individuals too risky to insure, ____ review, approve, or reject applicants written by agents.

Select one:

a. claim adjusters

b. independent agents

c. exclusive agents

d. underwriters

5.

If you would like to be able to invest the cash value of your life insurance in mutual fund shares, you would buy ____ insurance.

Select one:

a. universal life

b. variable life

c. whole life

d. term life

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Please answer ALL correctly!

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Thank you!

Answer 1

Solution 1.>

The correct option is (B).

The loan-to-value ratio is the ratio of total loan amount by the total value of the property.

Solution 2.>

The correct option is (A).

The five Cs of credit stands for: capacity, character, conditions, collateral, and capital.

Solution 3.>

The correct option is (B).

Non-depository institutions that lend funds to individuals to finance consumer purchases and to businesses to finance inventories, accounts receivables and to purchase equipment as well as real estate are called finance companies.

Solution 4.>

The correct option is (D).

To prevent the sale of insurance to individuals too risky to insure, underwriters review, approve, or reject applicants written by agents.

Solution 5.>

The correct option is (D).

If you would like to be able to invest the cash value of your life insurance in mutual fund shares, you would buy variable life insurance.

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