Free Financial CFSA Exam Questions (page: 17)

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If principal is paid on a loan after it has been placed on non-accrual status, the bank must determine whether it should record the payment as a reduction of:

  1. The loan principal amount
  2. Income interest
  3. Both of these
  4. Any one of these

Answer(s): D



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Financial institutions regularly identify uncollectible accounts and charge them off against the reserve of:

  1. Unearned loan revenue
  2. Loan losses
  3. Loan expenses
  4. All of these

Answer(s): B



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Watch lists of loans that are in danger of becoming delinquent generally contain information on such as:

  1. Customers name and account information
  2. Loan balance outstanding
  3. Available collateral and its estimated value
  4. All of these

Answer(s): D



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Deposit accounts are:

  1. Interest bearing accounts
  2. Non-interest bearing accounts
  3. Tax bearing accounts
  4. Either A or B

Answer(s): D



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Some small businesses keep funds in a savings account to gain interest on:

  1. Fixed assets
  2. Liquid assets
  3. Loans
  4. All of these

Answer(s): B



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