Lending Function
Which of the following is usually the most significant source of bank income?
Home equity line of credit
Which of the following is an example of an open end credit?
Credit card
Which of the following loans is normally unsecured?
Working capital loan
What type of commercial loan is appropriate for a business that needs funds soon and plans to repay the loan within 3 months?
Investigation
At what stage in the lending process do banks obtain and evaluate all available information to determine creditworthiness?
Redlining
Discriminating against prospective borrowers because of where they live is known as?
Unsecured
A loan that is not guaranteed by any type of collateral is?
Asset recovery department
What department helps prevent loan losses by taking action when payments are late?
Approving lending party for bank loan officers
Which of the following is the responsibility of a bank board of directors?
Regulation O
Which of the following federal reserve regulations imposes restrictions on lending to bank insiders?
Equal credit opportunity act (Reg. B)
Which of the following federal reserve regulations prohibits lenders from discriminating against credit applicants on the basis of age, race, color, religion, national origin, sex, marital status, or receipt of income from public assistance programs?
Security agreement
What is the standard document for establishing a security interest in collateral?
500 employees or less
Small businesses are defined by federal government as having:
Dodd-Frank Act
Which of the following laws has made many recent reforms to mortgage lending practices?
Security agreement
What document establishes a bank's right to collateral pledged for a loan?
Whole life insurance
What life insurance plan has a savings element?
Government bonds
Which of the following is considered a low risk investment?
Future value
What is the worth of money or assets currently in hand at a specific time if left to grow at a given rate?
Title insurance
What kind of insurance protects home buyers from loss when property ownership is questioned?
Estate planning
What form of planning should adults think about so that their assets and legal obligations are managed well and passed on to their selected beneficiaries?
Net present value
What is the difference between the cost of an investment and the discounted present value of that investments future earnings?
Net worth worksheet
What is a useful tool to assess ones complete financial situation?
Liquidity
What is the ability to quickly convert an asset to cash?
Money market account
Which of the following is considered a conservative growth investment?
Estate
For an individual what do assets, liabilities, and other legal obligations compose?
Capital growth
Aggressive investors primarily:
Certificate of deposit
Which of the following is FDIC insured?
Annuity
Which product pays financial benefits during the lifetime of the policyholders?
Contributions are not tax deductible
With a Roth IRA:
Housing
The largest household expenditure of the typical america is:
Positive pay
Which bank service matches checks presented for payment to lists of issued checks?
Irrevocable letter of credit
A letter of credit that cannot be cancelled without the consent of all parties is termed an:
Defined benefit plan
An employer assumes the investment risk in which type of employee benefit plan?
Paying agent
In what fiduciary role is the bank responsible for paying interest or dividends to the holders of stock or bonds issued by a corporation or government unit?
Sight draft
A draft payable on demand when presented to the drawee is an:
Structuring and distributing debt securities
What is an example of a capital market service provided to corporate customers?
Cash vault service
For what cash management service do banks offer safe transit of deposits with safeguards such as duel custody processing?
Letter of credit
What instrument issued by a bank substitutes the credit standing of the bank for the credit standing of the importer (buyers) of goods?
Edge corporation
Which of the following is a domestic office of a U.S. bank established for the purpose of transacting international business?
Account reconciliation
What bank service provides business with detailed reports on payments made and outstanding, balance accounts, and keeps records?
Investment banking services
What banking service helps companies find ways to raise capital in the form of debt (bonds) or equity (stocks)?
Registrar
What function is a bank trust department performing when it keeps records of purchases, sales, cancellations, and reissues of bonds or stock?
Key person insurance
What type of insurance protects a business from financial loss when an employee critical to company dies or suffers a serious disability?
$16
Your company imports fabric from Egypt. Each bolt of fabric cost 80 Egyptian pounds. The current exchange rate is: 1 US dollar = 5 Egyptian pounds. How much does each bolt of fabric cost in US dollars?
Primary Market
What market is used to offer new stock to the public for the first time?
Bait-and-switch
Advertising a product at a low price and then informing a prospective purchaser that only a higher price alternative is now available is an example of:
Pre-purchases searching
Gathering information about a product feature and benefits occurs during:
Ads
Banks spend the largest percentage of their marketing budget on:
8 am to 9 pm
Telemarketing calls between:
Profitability
What pillar of a market- driving strategies holds that the banks that build value into products and services can attract more customers at higher prices?
Customer perspective
Communicating in clear, concise, language, written or spoken, that is articulated from the customers-not the bank-point of view helps the bank meet which customers expectations?
Competitive profile
What type of profile might include information on other financial institutions market share and the types of process of services they offer?
Profiling
What is the process of gathering information about customers and competitors?
CAN-SPAM ACT
What federal law protects customers from unsolicited and unwanted email promotions?
Sex
Fair lending laws prohibit banks from processing credit applications on the basis of:
Market Share
What is one sellers portion of the total sales of a product, usually measured as percentage?
Market-driven strategy
What strategy holds that a business's objectives are best reached by first identifying customers needs and fulfilling them through an efficient, organization-wide, and management-supported effort?
Total Company Effort
What marketing principle holds that even when employees are not serving the customer directly they're are serving someone in the bank who is serving the customer?
A reasonable customer
Advertising is deceptive if it is likely to mislead:
Courteous treatment
When a teller acknowledges, greet, and uses the customer's name, it helps the bank meet which customer expectation?
Automatic session expiration
Which of the following is a security feature that closes an online banking visit after a certain period of inactivity, suck as 5 or 10 minutes?
Incident response programs
What do banks establish to respond to threats to the security of their data, systems, employees, or facilities?
A biometric system
What form or system of customer authentication are banks starting to use more for banking transactions?
Gramm-Leach-Bliley Act
Which act requires banks to develop security policies and procedures designed to protect customer account information and financial data?
Identity theft
The red flags of the red flag rules pertain to:
Phishing
Which customer scam involves sending customers seemingly legitimate email requests over the internet?
Right to financial privacy act
Which law was passed to protect the financial records of individuals from unwarranted access the federal government?
Ensure the safety of customers and other employees
During a bank robbery, what is an employee's primary objective?
Stop witnesses from leaving
Which of the following should a bank employee try to do after a robbery?
Money laudering
Which of the following involves moving large amounts of illegally obtained cash through bank accounts to hide the source of money?
Office of foreign assets control (OFAC)
What federal agency maintains a list of individuals, organizations, and countries subject to economic sanctions?
Sarbanes-Oxley act
Which law strengthened corporate governance standards for publicly owned corporations?
Pandemic
A disease that spreads rapidly around the globe is called a:
Business contingency plan
Just like banks that hire them what should third-party providers (vendors) have in place to recover from emergencies or disasters?
Share employment information of suspected criminal activity
The USA PATRIOT act allowed banks to: