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
© April 2009, Educational Textbook Company
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)
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