Banking Terms - MCQs with answers - Part II
1. Which one of the following is the ratio of the loan principal to the appraised value?a) Combined Loan To Value: (CLTV) ratio
b) Loan-to-Value Ratio
c) Mortgage Loan
d) Statutory Liquidity Ratio
View Answer / Hide AnswerANSWER: b) Loan-to-Value Ratio
The loans with LTV ratios higher than 100% are called underwater mortgages.
a) Market Capitalization
b) Market Price
c) Market Trend
d) Treasury Stock
View Answer / Hide AnswerANSWER: a) Market Capitalization
Market capitalization or market cap reflects the equity value of a company.
a) Fund derivative
b) Money fund
c) Mutual fund
d) Pension fund
View Answer / Hide AnswerANSWER: c) Mutual fund
Investors in a mutual fund pay the fund’s expenses, which reduce the fund's returns and performance.
a) AIRCSC
b) ARC
c) CAG
d) NCUA
View Answer / Hide AnswerANSWER: d) NCUA
NCUA stands for National Credit Union Administration.
a) BIS
b) CPI
c) FII
d) PITI
View Answer / Hide AnswerANSWER: d) PITI
PITI is the common acronym for principal, interest, taxes, and insurance.
a) CBS
b) DBS
c) IBS
d) POS
View Answer / Hide AnswerANSWER: d) POS
At the Point of Sale (POS), the retailer would calculate the amount owed by the customer and provide options for the customer to make payment.
a) PRP
b) REPO
c) UNDP
d) WPI
View Answer / Hide AnswerANSWER: a) PRP
PRP stands for Preferred Risk Policy.
a) FOIA
b) NCUA
c) RESPA
d) TILA
View Answer / Hide AnswerANSWER: c) RESPA
The Real Estate Settlement Procedures Act (RESPA) ensures that consumers are provided with helpful information about the cost of the mortgage settlement and protected from unnecessarily high settlement charges caused by certain abusive practices.
a) Benchmark Prime Lending Rate
b) Annual Percentage Rate
c) Bank Rate
d) Repo Rate
View Answer / Hide AnswerANSWER: d) Repo Rate
If Repo rate increases it becomes expensive to borrow money from RBI and vice versa.
a) TILA
b) RESPA
c) NCUA
d) UCC
View Answer / Hide AnswerANSWER: a) TILA
The Truth in Lending Act (TILA) is a Federal law that requires lenders to provide standardized information so that borrowers can compare loan terms. Lenders must provide information on what credit will cost the borrowers, when charges will be imposed, and what the borrower's rights are as a consumer.
a) AIRSCS
b) ARC
c) NSC
d) UCC
View Answer / Hide AnswerANSWER: d) UCC
Uniform Commercial Code (UCC) includes negotiable instruments, sales, stock transfers, trust and warehouse receipts, and bills of lading.
a) Internet banking
b) Universal banking
c) Virtual Banking
d) Wholesale banking
View Answer / Hide AnswerANSWER: b) Universal banking
Universal banks may offer credit, loans, deposits, asset management, investment advisory, payment processing, securities transactions, underwriting and financial analysis.
a) Universal banking
b) Virtual Banking
c) Wholesale Banking
d) None of these
View Answer / Hide AnswerANSWER: b) Virtual Banking
Internet banking is known as virtual banking. It is called so because it has no bricks and boundaries.
a) Universal banking
b) Virtual Banking
c) Internet banking
d) Wholesale banking
View Answer / Hide AnswerANSWER: d) Wholesale banking
Some services might include currency conversion, working capital financing and large trade transactions.
