49When matching loan terms to the appropriate index, which index

Get college assignment help at Smashing Essays Question 49When matching loan terms to the appropriate index, which index should be used for short-term loans and lines of credit that will mature in one year or less, generally at a variable rate?Select one:a. one-month, three-month, six-month, or one-year Treasury securitiesb. two-year, three-year, four-year, and five-year Treasury securitiesc. Federal Home Loan Bank (FHLB) advance ratesd. prime rate, adjusted as prime adjusts

28.Which item is a key consideration regarding the role of

Question 28.Which item is a key consideration regarding the role of a business banker in the customer-bank negotiation?Select one:a. a business banker must keep in mind the goals and needs of both the bank and the customerb. a business banker is responsible for negotiating terms that enhance the customer’s profitabilityc. a business banker should focus exclusively on what the bank wants in order to represent the interests of its depositors and investorsd. a business banker is responsible for negotiating terms that yield to the customer’s risk appetite

29.Which lending philosophy generally allows higher loan authorities for individual

Question 29.Which lending philosophy generally allows higher loan authorities for individual business bankers so that they may approve or reject most requests, subject to later review?Select one:a. legal lending limitb. supervisory loan-to-value (LTV)c. decentralized approachd. centralized approach

30.Which option is a common example of a “nice” term

Question 30.Which option is a common example of a “nice” term (negotiable) in a customer-bank negotiation?Select one:a. “will accept” positionb. loan support issuec. type of interest rated. many available financing alternatives perceived by borrower

31.Which factor tends to help or improve a bank’s negotiating

Question 31.Which factor tends to help or improve a bank’s negotiating leverage?Select one:a. involvement of multiple financial service providersb. customer with a strong financial positionc. a mature business with managers experienced in borrowingd. better locations and superior products

32.At which point in the negotiation process should the business

Question 32.At which point in the negotiation process should the business banker be fully aware of the customer’s objectives and position?Select one:a. setting an agendab. opening the negotiationc. presenting the proposal, listening to counterproposald. reaching an agreement

33.In an attempt to lower the loan pricing, a customer

Question 33.In an attempt to lower the loan pricing, a customer falsely states that another bank has made a better offer. This is an example of which negotiating tactic?Select one:a. misleadingb. bad-faith negotiationc. threatsd. escalating demands

34.Which cost of problem loans can be described as “unproductive

Question 34.Which cost of problem loans can be described as “unproductive time spent monitoring problem loans”?Select one:a. increased administrative expenseb. lowered employee moralec. damaged reputationd. increased regulatory expense

35.Which option would be correctly classified as a third-party early-warning

Question 35.Which option would be correctly classified as a third-party early-warning signal of a problem loan?Select one:a. deterioration in borrower’s cash positionb. significant changes in balance sheet structurec. change in supplier’s credit termsd. loss of any major customers

36.Which cost can result from an excessive number of problem

Question 36.Which cost can result from an excessive number of problem loans that damage a bank’s reputation?Select one:a. regulatory examination time and expenses increaseb. legal expenses increasec. capital raising effort and expenses increased. administrative and overhead costs increase

37.Which situation is a bank cause of problem loans?Select one:a.

Get college assignment help at Smashing Essays Question 37.Which situation is a bank cause of problem loans?Select one:a. loan origination to industries that are not understoodb. inadequate analysis of guarantorsc. improper loan structuring, support, and documentationd. poor product or service

38.Which adverse external development is exemplified by a firm’s inability

Question 38.Which adverse external development is exemplified by a firm’s inability to cope with natural disasters, such as fires, droughts, floods, and hurricanes?Select one:a. competitive factorsb. economic factorsc. technological factorsd. environmental factors

39.Which financial early-warning signal directly involves the borrower’s income statement?Select

Question 39.Which financial early-warning signal directly involves the borrower’s income statement?Select one:a. deteriorating cash positionb. adverse economic conditionsc. poor management of plant and equipmentd. major gap between gross and net sales

40.Which lender action that can lead to the early detection

Question 40.Which lender action that can lead to the early detection of a problem loan is exemplified by obtaining and reviewing financial information, calling on the business in person or by telephone, and regularly assessing the credit risk of a borrower after a loan is closed?Select one:a. initial financial analysisb. loan structuring, support, and documentationc. ongoing loan monitoringd. analysis of guarantors

41Which business process is in place to ensure success and

Question 41Which business process is in place to ensure success and minimize problem loans is exemplified by systems to monitor accounts receivable and inventory, and control overhead and other expenses?Select one:a. product quality assuranceb. financial controlsc. supplier managmentd. monitoring the competitive landscape

42Which situation is a non-financial early warning signal of a

Question 42Which situation is a non-financial early warning signal of a problem loan?Select one:a. changes in management, ownership, or key personnelb. missed employee payrollc. deteriorated liquidity or net working capital positiond. sent cancellation notice from an insurance company for nonpayment of a premium

43Within the steps to resolving a problem loan, why is

Question 43Within the steps to resolving a problem loan, why is it important to reevaluate the borrower?Select one:a. evaluating the bank and borrower’s strengths and weaknesses helps determine a course of actionb. some lenders grow too close to their customers and cannot objectively appraise the situationc. until a borrower has been tested by adversity, it is difficult to measure a borrower’s true characterd. a bank with a few bad credits and the likelihood for strong future earnings may decide to engage in protracted loan workouts

44Before proceeding to liquidate the collateral, which step involves careful

Question 44Before proceeding to liquidate the collateral, which step involves careful review of loan documents to ensure the bank has a valid security interest?Select one:a. gaining a borrower’s cooperationb. comparing the value and marketability of collateral against the borrower’s indebtednessc. confirming the bank’s rights to collaterald. analyzing the guarantor

46.Which item is directly impacted by a business banker’s loan

Question 46.Which item is directly impacted by a business banker’s loan pricing decisions?Select one:a. interest expense recorded by the bankb. interest income recorded by the bankc. current assets recorded by the bankd. current liabilities recorded by the bank

47Which loan pricing consideration generally provides flexibility in setting the

Question 47Which loan pricing consideration generally provides flexibility in setting the loan rate?Select one:a. the current market interest ratesb. the total customer-bank relationshipc. the pricing models used by banksd. the customer’s perspective on loan pricing

48Which option identifies the concept that a dollar received today

Question 48Which option identifies the concept that a dollar received today is worth more than a dollar received in the future?Select one:a. time value of moneyb. inflationc. depreciationd. interest rate

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