El Camino College Finance Quiz 3 2014 Rooks

El Camino College
Finance Quiz 3 2014 Rooks

1. Private, noninsured investment accounts are called:

a. money market funds.

b. certificates of deposit.

c. mutual funds.

d. money portfolios.

2. A loan held by a lender rather than sold into the secondary market is referred to as a:

a. seasoned loan.

b. retainment loan.

c. portfolio loan.

d. nonliquid loan.

3. FIRREA:

a. protects the federal deposit insurance funds.

b. applies to all federally related transactions.

c. sets procedures for loans in federally related transactions.

d. all of the above.

4. Mortgage bankers/mortgage companies:

a. originate, service, and sell loans.

b. act only as “go-betweens.”

c. are part of the secondary market only.

d. none of the above.

5. A loan where the lender assumes a percentage of ownership is called:

a. a percentage loan.

b. a quasi-ownership loan.

c. a participation loan.

d. an unseasoned loan.

6. Credit unions were first set up in:

a. 1870.

b. 1970.

c. 1990.

d. 2006.

7. Banks who supply capital for business ventures and construction activities on a short term basis are called:

a. savings and loans.

b. credit unions.

c. commercial banks.

d. none of the above.

8. Indirect lenders include:

a. pension funds.

b. mortgage brokers.

c. insurance companies.

d. both a and c are correct.

9. A loan can often be seasoned in:

a. 6-12 months.

b. 12-18 months.

c. 2 years.

d. 5 years.

10. The primary market consists of:

a. mortgage companies.

b. savings banks.

c. local banks.

d. all of the above.

Real Estate Finance – 7th Edition

Chapter 3 Quiz Answers

1. a (p. 51)

2. c (p. 51)

3. d (p. 52)

4. a (p. 57)

5. c (p. 56)

6. b (p. 54)

7. c (p. 53)

8. d (pp. 55-56)

9. a (p. 58)

10. d (p. 61)