Free Financial CFSA Exam Questions (page: 20)


A. Credit card loans
B. Residential loans
C. Mortgage loans
D. Al of these

Answer(s): C
QUESTION: 72
Types of commercial loans are /are:

A. Installment loans
B. Floor plan financing
C. Asset-based financing
D. Both B and C

Answer(s): D
QUESTION: 73
Management of the lending institution sets a reserve for loan losses at a given point based on
such factors as mentioned below EXCEPT:

A. Number and type of loans made
B. Quality of loans made
C. Historical loss experience
D. Loan portfolio

Answer(s): D
QUESTION: 74
If more funds than expected are needed to cover loans losses in a given period, the reserve
must be increased and the difference is charged to:

A. Administration expenses
B. Prepaid assets
C. Operating expenses
D. Loan expenses

Answer(s): C
QUESTION: 75
When a loan becomes delinquent or when collection seems unlikely, banks often suspend:

A. Accrual of interest
B. Deferral of interest
C. Loan losses
D. Loan prepayments

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