Chap1718StudyGuide - FI 350 Chapter 17 Study Guide A(n)_ is...

Info iconThis preview shows pages 1–3. Sign up to view the full content.

View Full Document Right Arrow Icon
FI 350 Chapter 17 Study Guide A(n)______________________ is generally used to support the construction of homes, apartments, office buildings and other permanent structures. Working capital loans often require ______________________. These are required deposits in the bank by the borrower whose size is dependent on the size of the credit line. When the title to accounts receivables pledged in an asset based loan is passed to the lender and the lender takes some of the responsibility for collecting the accounts receivables this is called _____________________. A(n)______________________ is the purchase of a publicly traded company by a small group of investors. These investors often borrow very heavily to finance the purchase of the stock of the company. ____________________________________________ are potential claims against the borrower which do not show up on the borrower's balance sheet. One new form of this is due to environmental damage by the borrower. ______________________ refers to the borrowers' use of debt in their firm. The______________________ is the interest rate charged the bank's most creditworthy customers on short-term working capital loans. _____________________ is the rate on short-term Eurocurrency deposits which range in maturity from a few days to a few months. Short-term lending to support the construction of homes, apartments, office buildings, shopping centers, and other permanent structures is known as a (or an): A) Self-liquidating B) Working capital loan C) Interim construction loan D) Asset-based loan E) None of the above Business loans designed to fund long- and medium-term business investments, such as the purchase of equipment or the construction of physical facilities, covering a period longer than one year are known as:
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
A) Working capital loans B) Term loans C) Interim construction financing D) Durable goods loan E) None of the above A credit agreement in which a business customer may borrow up to a pre-specified limit, repay all or a portion of the borrowing, and reborrow as necessary until the credit line matures is known as a (an): A) Interim construction B) Project loan C) Working-capital loan D) Revolving line of credit E) None of the above Banks oftentimes bid on the opportunity to finance the entire inventory of an automobile dealer through a ___________ arrangement. A) Factoring B) Floorplanning C) Project loan D) Revolving line of credit E) None of the above The most common sources that lenders look to for repayment of business loans include all of the following except: A) The borrower's cash flow. B) Assets pledged as collateral. C) Relatives of the borrower. D) The borrowers net worth E) None of the above When analyzing the financial statements of a business, a credit analyst will look for ratios in which of the following categories: A) Profitability. B)
Background image of page 2
Image of page 3
This is the end of the preview. Sign up to access the rest of the document.

Page1 / 10

Chap1718StudyGuide - FI 350 Chapter 17 Study Guide A(n)_ is...

This preview shows document pages 1 - 3. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online