IIA-CFSA

IIA-CFSA practice questions, page 15 of 21, with answer review and explanations.

Question 71

Common type/s of installment loans is/are:

  1. Credit card loans
  2. Residential loans
  3. Mortgage loans
  4. All of these

Question 72

Types of commercial loans are /are:

  1. Installment loans
  2. Floor plan financing
  3. Asset-based financing
  4. Both B and C

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:

  1. Number and type of loans made
  2. Quality of loans made
  3. Historical loss experience
  4. Loan portfolio

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:

  1. Administration expenses
  2. Prepaid assets
  3. Operating expenses
  4. Loan expenses

Question 75

When a loan becomes delinquent or when collection seems unlikely, banks often suspend:

  1. Accrual of interest
  2. Deferral of interest
  3. Loan losses
  4. Loan prepayments