Q. The Short-Term Crop Loan given to Farmers are generally for a period of _____?
✅ Correct Answer: (D)
12 months
Banking and Finance 3 MCQs and Notes
Q. What is pledge:
✅ Correct Answer: (A)
The bailment of goods as security for payment of a debt or performance of a promise
Q. Where a person pledges goods in which he has only a limited interest, the pledge is:
✅ Correct Answer: (C)
Valid to the extent of that interest
Q. When a financial institution sells a mortgage with recourse, the financial institution retains a credit risk liability in the event the buyer returns the mortgage.
✅ Correct Answer: (A)
True
Q. FHA mortgages and VA mortgages are conventional mortgages.
✅ Correct Answer: (B)
False
Q. Benefits of securitization include all of the following EXCEPT:
✅ Correct Answer: (C)
Greater reserve requirements
Q. As part of a mortgage agreement, a financial institution places a lien on the property until the loan is paid in full.
✅ Correct Answer: (A)
True
Q. What type of mortgages are used to finance the acquisition of apartment complexes, townhouses, and condominiums?
✅ Correct Answer: (D)
Multifamily dwelling mortgages
Q. . _________ paid at closing can reduce the interest rate used to determine the monthly payments on a mortgage.
✅ Correct Answer: (A)
Discount points
Q. As a fixed-rate mortgage nears maturity, the portion of the monthly mortgage payment that is applied to principal _________ while the amount that is applied to interest ___________.
✅ Correct Answer: (B)
Increases; decreases