• Finance Quiz – 18

    171 When the interest rates tend to move upward, which is the most common scenario?
      A) Lenders prefer to offer fixed rate mortgage
      B) Borrowers prefer fixed rate mortgage
      C) Borrowers prefer ARMs
      D) None of these
       
    172 Monthly repayments of mortgages depend on the
      A) Size of loan
      B) Interest rate
      C) Maturity
      D) All of the above
       
    173 The mortgage which are not insured are known as
      A) Conventional Mortgage loans
      B) Non-Conventional Mortgage loans
      C) Both of them
      D) None of them
       
    174 At the end of lease period, if the sale price of ‘leased vehicle’ is lesser than the leased amount, customer has to pay the difference. This is applicable in the case of?
      A) Open Ended lease
      B) Close ended lease
      C) Both a and b
      D) None of these
       
    175 Monthly payments for these type of lease is higher because of the risk of market value becoming less than the residual value of the asset at the end of the lease period?
      A) Open Ended lease
      B) Close ended lease
      C) Both a and b
      D) None of these
       
    176 Which of the following statements is incorrect about securitization?
      A) Securitization is the issuance of a debt instrument in which the promised payments are derived from revenue generated by defined pool of loans
      B) Mortgage loans can be securitized
      C) Automobile loans cannot be securitized
      D) None of the above
       
    177 Financing technique which involves the conversion of usually illiquid assets  like mortgages  with predictable cash flows into marketable securities is known as?
      A) Securitization
      B) Asset based loan
      C) Syndicated loans
      D) None of these
       
    178 Which are the valid point(s) related to Securitization?
      A) It can be done on a recourse or non-recourse basis
      B) It separates risks inherent in any corporate finance transaction and transfers these risks from the seller to the purchaser of assets
      C) Financing technique that involves the conversion of usually illiquid assets with predictable cash flows into marketable securities
      D) All of the above
       
    179 A lease is treated as a capital lease
      A) If Lease life exceeds 75% of life of asset
      B) If there is a transfer of ownership to lessee at the end of lease term
      C) If there is an option to purchase the asset at “bargain price” at the end of lease term
      D) All of the above
       
    180 Hybrid of debt and equity financing is known as?
      A) Asset based finance
      B) Mezzanine finance
      C) Merger finance
      D) None of these

     

    Click here for Answers: http://crackmba.com/finance-quiz-18-answers/

    Post Tagged with ,
Comments are closed.