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ABA CTFA Practice Test - Questions Answers, Page 25

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List of questions

Question 241

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A way to analyze whether debt or lease financing would be preferable is to:

Question 242

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A conventional revolving credit agreement allows:

Question 243

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The type of lease that includes a third party, a lender, is called a(n):

Question 244

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One advantage of a financial lease is that:

Question 245

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Medium-term notes (MTNs) have maturities that range up to:

Question 246

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A direct lease, a sale and leaseback, and a leveraged lease are all examples of:

Question 247

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One of the components of monthly mortgage insurance is homeowner's insurance. Its cost varies with factor/s as:

Question 248

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Sale of real estate property in which the proceeds are less than the balance owed on loan secured by property sold.

Question 249

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Real estate commissions generally range _______ for new homes and ________ for previously occupied homes or resales. It may be possible to negotiate a lower decision with your broker or to find or o

Question 250

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It is the process of arranging with a mortgage lender, in advance of buying a home, to obtain the amount of mortgage financing the lender deems affordable to home buyer.

Question 241

A way to analyze whether debt or lease financing would be preferable is to:

Compare the net present values under each alternative, using the cost of capital as the discount rate

Compare the net present values under each alternative, using the after-tax cost of borrowing as the discount rate

Compare the payback periods for each alternative

Compare the effective interest costs involved for each alternative

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Question 242

A conventional revolving credit agreement allows:

To borrow a fixed amount for the entire commitment period

To borrow for a short-period with a right to renew the loan during the commitment period

To possibly include a provision to convert the credit agreement into a term loan contract at maturity

All of the above

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Question 243

The type of lease that includes a third party, a lender, is called a(n):

Sale and leaseback

Direct leasing arrangement

Leveraged lease

Operating lease

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Question 244

One advantage of a financial lease is that:

It has a shorter maturity than term loans

It never appears as a liability on the balance sheet

It eliminate the needs to make periodic payments

It provides a way to indirectly depreciate land

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Question 245

Medium-term notes (MTNs) have maturities that range up to:

One year (But no more)

Two years (but no more)

Ten years (but no more)

Thirty years (or more)

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Question 246

A direct lease, a sale and leaseback, and a leveraged lease are all examples of:

Operating leases

Financial leases

Full-service leases

'off-balance sheet' methods of financing

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Question 247

One of the components of monthly mortgage insurance is homeowner's insurance. Its cost varies with factor/s as:

Age of the house

Location

Material used in construction

A and B Only

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Question 248

Sale of real estate property in which the proceeds are less than the balance owed on loan secured by property sold.

Foreclosure

Real estate short sale

Multiple listing service

None of these

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Real estate commissions generally range _______ for new homes and ________ for previously occupied homes or resales. It may be possible to negotiate a lower decision with your broker or to find or one who charges a flat fee.

From 5%-6% for new and from 6%-7%

From 4%-6% for new and from 6%-9%

From 4%-6% for new and from 8%-9%

From 4%-6% for new and from 6%-7%

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Question 250

It is the process of arranging with a mortgage lender, in advance of buying a home, to obtain the amount of mortgage financing the lender deems affordable to home buyer.

Multiple listing service

Prequalification

Earnest money deposit

Contingency clause

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Total 895 questions