1. Open-end credit has the highest rate of growth in recent years because it is the most flexible and
2. Credit cards, Check lines of credit, Standalone unsecured lines, and secured lines.
1. Consumer lending varies in different states but is generally defined as a loan to consumers for
purchase of items or services for personal use. Loans not included in this definition, but still
applicable to consumer lending, are home mortgages or lease
Final Examination A
Instructions: Circle the letter that best answers the question, responds to the statement, or
completes the statement.
What is the pro
1. Creating a loan policy is a dynamic process because it is a living document
customized within a standard to fit rapidly changing bank environments.
2. A formal lending policy gives loan officers clear direction on processing
applications and meeting ba
[CURRENT EVENT PAPER]
Consumer Financial Protection
Bureau Requests Input From the
The Consumer Financial Protection Bureau publicized March 17, 2015 it
is looking for public reaction on the effect of the Bureaus credit card
safeguards on consume
1. The differences between fixed and variable rate loans are that fixed rate
loans do not adjust to changes in the market, whereas variable rate loans
do. The fact that fixed rates do not change expose lenders to higher interest
rate risks. Variable rates
Midterm Examination A
Instructions: Circle the letter that best answers the question.
What is the practice of charging interest rates on borrowed money th
1. The centralized approach to lending is where applications for credit are taken from multiple
locations and channels and then processed through one centralized credit approval area. The
decentralized approach is where each location and source is respons
1. Making the best loan for the consumer and the bank means analyzing all
relevant information to insure the consumer is well informed throughout
the process so the loan can be customized to respond to both interests.
2. Human behavior that helps the lend
1. Loan volume is the number that replicates both the activity and effectiveness in the market and
of the banks products such as the number and dollar amounts of new or advanced loans during
a given period. Loans outstanding are the interest-earning asset