5. In Vietnamese banking system…………….

is established by the Government and

operates not for profit to implement Slate’s socio-economic policies.

A. State-owned Commercial Bank B. Cooperative bank

C. Policy bank D. Representative Offices of Foreign

Bank

6.... is financial institution's bad-debt reserve, as reported on its balance sheet.

Correspondingly, an expense item on a bank's Report of Income designed to shelter a
bank's current earning from taxes and help prepare for bad loan is called.

A. Allowance loan loss / Provision for possible loan losses

B. Reserve Requirements / Provision for possible loan losses

C. Allowance loan loss / Net non-interest expense

D. Provision for possible loan losses / Allowance loan loss

7. The …………... lists the uses and the sources of funds held by the bank on a given date.

A. Report of Condition B. Report of Income

C. Report of Cash flow D. Notes to financial statement

8. A banks……………. gives loan officers specific guidelines in making individual loan

decisions and in shaping the overall loan portfolio.

A Loan Commitment Agreement B. Written loan policy

C. Loan Application D. Financial statement

9. You borrowed $10,000 for a year with a loan fee of $100 and interest totaling $900.
Your finance charge will be:

A.$100 B.$1.000

C.$800 D$10.900
C. Net Noninterest Income D. Net Income Before Taxes

16. Which statement is not true about banking operation?

A. Banks are those financial institutions that today offer the widest range of financial services of
any business firm in the economy.

B. The role performed by banks in the economy in which they transform savings into credit is
known as the intermediation role.

C. One of the principal reasons for government regulation of financial firms is to protect the
safety and soundness of the financial system.

D. Money-center banks usually serve local communities, towns, and cities, offering a
narrow menu of services to the public.

17. Banks are regulated for which of the reasons listed below?

A. Banks are leading repositories of the public's savings.

B. Banks have the power to create money.

C. Banks provide businesses and individuals with loans that support consumption and
investment spending.

D. All of the above.

18. In Vietnamese banking system... is may conduct one or some banking operations under
the law of credit institutions, except taking deposits of individuals and providing services
of payment via client accounts.

A. Banks B. Micro Financial Institutions

C. Non-Bank Credit Institutions D. People's credit fund

19. An account at a bank that carries a fixed maturity date with a fixed interest rate and
which often carries a penalty for early withdrawal of money is called:
C. Commercial and industrial loans D. None of the above

25. A Fed Funds loan that is an unwritten agreement negotiated via wire or telephone with the
borrowed funds returned the next month is known as

A. A term loan B. A continuing contract

C. An overnight loan D. None of the above

26. How much will be in saving account of $7,000 after one-and-a-haft years. Know that the
interest rate is 7.3% per year and compounded haft yearly?

A. $7.794.82 B. $523.53

C. $7,523.53 D. $794.82

27. Along with Eurodollar borrowings, Subordinated debt is an example of

A. Nondeposit borrowings B. Deposit

C. Security Holdings D. Equity capital

28. Jerry LeGere, a loan officer with First National Bank, checks to see if the house pledged to
back up a home mortgage has a clear title and proper insurance. What step in the lending
process is Jerry performing?

A. Finding prospective customers.

B. Making a site visit and evaluating a customer's credit history.

C. Evaluating a prospective customer's financial condition.

D. Assessing possible collateral.

29. How much interest will be earned in the third year if $20,000 is deposited in three
years with APR at 6.9% and interest compounded annually?

A. $4.432.2 B. $2,855.22

C. $7,287.45 D. $1,577.01
C. $1,710.00 D. $990.00

35. Banks generate their largest portion of income from:

A. Demand deposits. B. Loans.

C. Certificates of deposit. D. Short-term investment.

36. Which of following transactions do not affect interest income of commercial bank?

A. The bank recorded $15 as as the amount of overdraft interest on the deposit account of its
customers.

B. Bank gains $25 from security investment by price difference.

C. Bank received $10 as coupon payment of gorvement bond that bank is holding.

D. The bank collected $1 million in interest payments from business loans that it made earlier
this year.

37. Dan Cross, a loan officer at First State Bank of Durant, has been busy visiting local
businesses to see if any of them needs credit. Which step in the lending process is Dan
performing?

A. Finding prospective customers

B. Making a site visit and evaluating a customer's credit history

C. Evaluating a prospective customer's financial condition

D. Assessing possible collateral and signing the loan agreement

Big question: A bank that has the following information (in billion)

Miscellaneous Assets $30 Time deposit at other Banks $150

Cash in vault $10 Capital Surplus $5

Deposits $400 Deposits at the Federal Reserve $5

4. Which of following transactions do not affect interest income of commercial bank?
A. Bank gains $25 from security investment by price difference.
B. Bank received $10 as coupon payment of government bond that bank is holding.
C. The bank recorded $15 as the amount of overdraft interest on the deposit account of its
customers.
D. The bank collected $1 million in interest payments from business loans
5. ……………… is financial institution's bad-debt reserve, as reported on its balance
sheet. Correspondingly, an expense item on a bank's Report of Income designed to shelter
a bank's current earning from taxes and help prepare for bad loan is called .....
A. Provision for possible loan losses / Allowance loan loss
B. Allowance loan loss / Provision for possible loan losses
C. Reserve Requirements / Provision for possible loan losses
D. Allowance loan loss / Net non-interest expense
6. 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 C. Relatives of the borrower
B. Assets pledged as collateral D. The borrowers net worth
7. ……………. refers to the delivery of services by a bank to individual consumers rather
than to companies or other banks.
A. Minority Bank B. Commercial bank
C. Retail bank D. Saving bank
8. In Vietnamese banking system,.... is established by the Government and operate not for
profit to implement the socio-economic policies.
A. Representative Offices of Foreign Bank C. Cooperative bank
B. State-owned Commercial Bank D. Policy bank
9. A bank's______ gives loan officers specific guidelines in making individual loan
decisions and in shaping the overall loan portfolio.
A. Loan Application B. Written loan policy
is 0.25 %. If this customer wants to borrow $5 million from the bank, how much in
interest will this customer pay in one year?
A. $300,000 C. $332,500
B. $320,000 D. $665,000
17. Which of following statement is NOT correct about non-deposit borrowings of the
bank?
A. One of the factors to consider when a bank chooses among nondeposit funding sources is the
relative cost of each sources
B. Nondeposit borrowings provides the additional liquidity that cash assets and securities cannot
provide to commercial bank
C. Bank agrees to sell T-bills to another party and at the same time agrees to buy them back at a
set price is known as a repurchase agreement
D. There are no restrictions on getting fund from any source of non-deposit borrowings.
18. Banks are regulated for which of the reasons listed below?
A. Banks provide businesses and individuals with loans that support consumption and
investment spending.
B. Banks are leading repositories of the public's savings.
C. Banks have the power to create money.
D. All of the above.
19. Jerry LeGere, a loan officer with First National Bank, checks to see if the house
pledged to back w mortgage has a clear title and proper insurance What step in the
lending process is Jerry performing?
A. Finding prospective customers
B. Making a site visit and evaluating a customer's credit history
C. Evaluating a prospective customer's financial condition
D. Assessing possible collateral
20. Many students cannot afford university their tuition fees. Which type of the following
loans can help them?
A. Business loans C. Commercial loans
26. Certificate of Deposit (CDs) is different from other types of non-transaction deposit in
term of:

A. Minimum deposit amount C. Early wuthdrawal limitation

B. Negotiable instrument D. All of the above

27. Loans extended to finance the purchase of automobiles, mobile homes, home
appliances, and vacations are classified as:

A. Agricultural loans C. Real estate loans

B. Commercial and industrial loans D. None of the above

28. In Vietnamese banking system, …………………. is may conduct one or some banking
operations under the law of credit institutions, except taking deposits of individuals and
providing services of payment via client accounts.

A. Banks C. Micro Financial Institutions

B. Non- Bank Credit Institution D. People’s credit fund

29. A Fed Funds loan that is an unwritten agreement negotiated via wire or telephone with
the borowed funds returned the next month is known as:

A. An overnight loan C. A continuing contract

B. A term loan D. None of the above

30. The role performed by banks in the economy in which they transform savings into
credit is known as the………………………….

A. The intermediation role C. The payment role

B. The consulting role D. The guarantor role

31. How much will be in saving account of $7,000 after one-and-a-hafl years. Know that
the interest rate is 7.3% per year and compounded hafl yearly?
B. Banks are those financial institutions that today offer the widest range of financial services of
any business firm in the economy.

C. The role performed by banks in the economy in which they transform savings into credit is
known as the intermediation role.

D. Money-center banks usually serve local communities, towns, and cities, offering a
narrow menu of services to the public.

36. Along with Eurodollar borrowings, Fed funds purchased is an example of………………….

A. Security Holdings C. Deposit

B. Nondeposit borrowings D. Equity capital

37. Banks ganerate their largest portion odd income from:

A. Short-term investment C. Loans

B. Demand deposits D. Certificate of deposit.

Big question: A bank that has the following information (in billion):

Deposit at the Federal Reserve $10 Non-deposit Borrowings $140

Allowance for Loan Losses $40 Contingancy Reserve $10

Total Assets $600 Common Stock Par $20

Miscellaneous $30 Time deposit at other Banks $150

Cash in vault $5 Capital Surplus $5

Deposit $400

38. What is this bank’s primary reserve?

A. $10 C. $25
4. Which of following statement is not a purpose of bank regulations?

A. Guarantee minimum profitability of the banking system

B. Protect consumers from abuses by banks

C. Ensure safety and soundness of banks

D. Provide monetary stability

5. Along with Fed funds purchased, Eurodollar borrowings is an example of………..

A. Nondeposit borrowings B. Security Holdings

C. Deposit D. Equity capital

6. In Vietnamese banking system,……….. means a bank of all people's credit funds for
the main purposes of systematic link, financial support and capital balancing within the
system of those.

A. State-owned Commercial Bank B. Cooperative bank (Ngân hàng hợp tác xã)

C. Policy bank D. Representative Offices of Foreign Bank

7. A expense item on a bank's Report of Income designed to shelter a bank's current

earning from taxes and help prepare for bad loan is called………..

A. Reserves account with the State Bank B. Contigency Reserves

C. Allowance for possible loan losses D . Provision for possible loan losses

8. The Edmond National Bank serves only the City of Edmond, Oklahoma and
concentrates on providing best possible service to this city. What type of bank is this most
likely to be?

A. Community Bank B. Money-center Bank

C. Virtual Bank D. Universal Bank

A. The bank collected $1 million in interest payments from business loans that it made earlier
this year.

B. Depositor's checking account is charged $10 monthly for SMS service

C. The bank recorded $15 as as the amount of overdraft interest on the deposit account of its
customers.

D. Bank received $10 as coupon payment of gorvement bond that bank is holding.

15. A business receives a three year line of credit against which it can borrow, repay and
borrow again if necessary during the loan's three year term. What type of loan is this?

A. Lum-sump loan B. Revolving loan

C. Syndicated loan D. Non-Revoling loan

16. The bank offer overdraft deposit account to customer with the limit of $1000. Which
account of bank's balance sheet is going to be affected at that time?

A. Deposit B. Unused loan commitment

C. Loan and Leasing D. Standby credit agreement

17. A(n) is a short-maturity deposit in which the bank pays a competitive interest rate to
the depositors.

A. Transaction account B. Eurocurrency deposit account

C. Savings account D. Money market deposit account

18. How much interest will be earned in the third year if $1,000 is deposited that earns 8%
interest compounded annually?

A. $593.31 B. $105.62

C. $93.31 D. $104.00
23. Find the interest on $1000 at the rate of 8% per year for one and a-half years when
interest is compounded semiannually?

A. $1124.86 B. S124.86

C. $120.00 D. $127.04

24. Banks that sell deposits and make loans to both businesses and individuals are known
as

A. Commercial Banks B. Retailed Banks

C. Central Banks D. Wholesale Banks

25………. are loans to businesses to cover such things as purchasing inventory, paying
taxes and meeting payroll expenses.

A. Consumer loans B. Agriculture loans

C. Credit card loans D. Industrial loans

26. If you borrowed $20,000 for a year with a loan fee of $200 and interest totaling $1000,
your finance charge will be:

A. $200 B. $1.200

C. $1,000 D. $21.200

27. A loan or line of credit extended to a business by a group of lending institutions in

order to reduce the risk exposure is known as:

A. Project loan B. A working capital loan

C. Syndicated loan D. Non-Revoling loan

28. Terry May, a loan officer with First National Bank, calculates liquidity and debt ratios
for the Lava Lamp Company and also examines their cash flow statement. What step in
the lending process is Terry performing?
33. The Bank of American buys airplanes and rents them to the United Airlines. What
type of credit service has this bank made?

A. Financial leasing service B. Financial institution loan

C. Loan to an individual D. Commercial and industrial loan

34. Special mentioned loans are credits on which any scheduled loan repayments and
interest payments are past due from.....to ...days.

A. 181/360 B. 10 / 90

C 91/180 D. None of the above

35. A bank that has total interest income of $800 million and total noninterest income of
$100 million. Its provision for loan losses is $100 million, total interest expenses of $500
million and total noninterest expenses (excluding PLL) of $150 million. This bank's taxes
are $80 million. What is this bank's net non-interest income?

A. ($50) B $300

C. $120 D. $150

36. Continuing from question five above, what is this bank's net income after tax?

A. $70 B. $150

C. ($50) D. $80

37. A bank sells shares of its common stock with a par value of $100 for $200 in the
market. Which two accounts on the bank's balance sheet are going to be affected?

A. Retained earnings and capital surplus accounts

B. Common stock outstanding and capital surplus accounts

C. Retained earnings and common stock outstanding accounts

D. Subordinated notes and debentures and commons stock outstanding accounts

C. Standby credit agreement D. Loan and Leasing

3. The Edmond National Bank serves only the City of Edmond, Oklahoma and
concentrates on providing the best possible service to this city. What type of bank is this
most likely to be?

A. Virtual Bank B. Universal Bank

C. Community Bank D. Money-center Bank

4. Banks that sell deposits and make loans to both businesses and individuals are known
as_____________

A. Commercial Banks B. Central Banks

C. Retailed Banks D. Wholesale Banks

5. A(n) ____________is a short-maturity deposit in which the bank pays a competitive

interest rate to the depositors.

A. Transaction account B. Savings account

C. Eurocurrency deposit account D.Moneymarket deposit account

6. Terry May, a loan officer with First National Bank, calculates liquidity and debt ratios
for the Lava Lamp Company and also examines their cash flow statement. What step in
the lending process is Terry performing?

A. Finding prospective customers

B. Making a site visit and evaluating a customer's credit history

C. Evaluating a prospective customer's financial condition

D. Assessing possible collateral and signing the loan agreement

7. Along with Discount-window loan, repurchase agreement is an example of

A. Nondeposit borrowings B. Security Holdings

13. A business receives a three year line of credit against which it can borrow, repay and
borrow again if necessary during the loan's three year term. What type of loan is this?

A. Lum-sump loan B. Syndicated loan

C. Revolving line of credit D. Non-Revoling loan

14. All members of a family want to open a shared demand deposit account. Which one of
the following accounts is suitable for them?

A. Single account B. Joint account

C. Overdraft account D. Savings account

15. Assume that a bank receives $20,000 as one-year-saving deposit from a customer and
lends it all to another customer for a year, excluding legal reserve requirements at 4% on
deposit. The bank pays a straight 6% APY to the depositor and charges 11% per year to
the borrowers. Calculate the spread of the bank for one year.

A. -$1,048.00 C. $912.00

B. $990.00 D. $1,000.00

16. An payments are fixed________is a loan for which the amount of the payments, the
rate of interest, and the number of

A. Lum-sump loan B. Unsecured loan

C. Installment loan D. Revolving line of credit

17. Antony opens saving account of $300 for 1 year and receives upfront interest of $30.
Which two accounts on the bank's financial statement are going to be affected?

A. Deposit and interest expense B. Deposit and non-interest expense

C. Deposit and interest income D. Deposit and non-interest income

18. Which of following transactions do not affect interest income of commercial bank?
B. Pay once at the beginning of the period

C. Periodically pay with monthly compounding interest

D. Periodically pay with quarterly compounding interest

23. One of the three types of loans in the Fed Funds market,_________-are automatically
renewed each day unless either the borrower or lender decides to end this agreement.

A. A long-term loan C. An overnight loan

B. A term loan D. A continuing contract

24.__________is a record of how well one applicant has repaid debt in the past.

A. Credit history C. Business performance

B. Public record D. Criminal record

25. If you borrowed $20,000 for a year with a loan fee of $200 and interest totaling $1000,
your finance charge will be:

A. $200 C. $1,200

B. $1,000 D. $21,200

26. Certificate of Deposit (CDs) is different from other types of non-transaction deposit in
terms of:

A. Early withdrawal limitation C. Negotiable instrument

B. Minimum deposit amount D. All of the above

27. The bank places its $1,000 as the reserve requirement ratio into a reserve account at
State Bank. Which items on a bank's Balance sheet would be affected?

A. Non-deposit borrowings B. Miscellaneous asset

C. Equity capital D Cash asset

A. 10 / 90 C. 181/360

B. 91/180 D. None of the above

34. Which of following statement is NOT correct about deposit service of the bank?

A. Deposit accounts whose principal function is to make payments for purchases of goods and
services are called Transaction accounts

B. Term deposits are among the most volatile and least predictable of a bank's sources of
funds with the shortest potential maturity.

C. Customers who wish to set aside money in anticipation of future expenditures or financial
emergencies put their money in savings deposits

D. Deposit services reflect the reputation and growth of the banks.

35. A bank sells shares of its common stock with a par value of $100 for $200 in the
market. Which two accounts on the bank's balance sheet are going to be affected?

A. Retained earnings and capital surplus accounts

B. Common stock outstanding and capital surplus accounts

C. Retained earnings and common stock outstanding accounts

D. Subordinated notes and debentures and commons stock outstanding accounts

36. A expense item on a bank's Report of Income designed to shelter a bank's current
earning from taxes and help prepare for bad loan is called___________

A. Reserves account with the State Bank C. Allowance for possible loan losses

B. Contigency Reserves D. Provision for possible loan losses

A. Liquidity risk (Rủi ro thanh khoản)

B. Operation risk

C. Credit risk

D. Market risk

2. XYZ bank’s loan portfolio includes 30% short-term loan, 20% medium-term loan and 50%
long-term loan. It is the loan classification by: (phân loại khoản vay)

A. Loan purpose

B. Maturity date (ngày đáo hạn)

C. Economic entity

D. Quality of loan

3a. Which of the following transactions do not affect interest income of commercial banks?

A. The bank collected $1 million in interest payments from loans of Intel Composition Group that it
made earlier this year.

B. Bank received $10 as coupon payment of government bond that bank is holding.

C. The bank recorded $15 as the amount of overdraft interest on the deposit account of its customers.

D. Jones’s checking account is charged $10 monthly for SMS service

3b. Which of following transactions do not affect interest income of commercial bank?

A. Bank gains $25 from security investment by price difference.

B. Bank received $10 as coupon payment of gorvement bond that bank is holding.

C. The bank recorded $15 as as the amount of overdraft interest on the deposit account of its customers.

D. The bank collected $1 million in interest payments from business loans

4. Which investment instruments reach maturity within one year and are noted for their low risk
and ready marketability?
8. …… are payable on demand whenever depositor chooses.

A. Demand deposit

B. Time deposit

C. Mobile banking

D. Online banking

9. Andy open the saving account with 10 million VND at XYZ bank within 6 months for an APR
6.7%/year. At the maturity, he receives 10.3378 million VND totally. Which payment method does
the bank apply in this case?

A. Pay once at maturity

B. Pay once at the beginning of the period

C. Periodically pay with monthly compounding interest

D. Periodically pay with quarterly compounding interest

10. Specific property that secures the loan is called…..

A. Collateral

B. Loan term

C. Interest rate

D. Liquidity

11. A bank is a … for safeguarding, transferring, exchanging, or lending of money.

A. Credit union

B. Financial intermediary

C. Finance company

D. Central bank

12. …. are certificates issued by banks that guarantee the payment of a fixed interest rate until
maturity date, which is a specified date in the future.

A. Certificates of deposit
C. Evaluating a prospective customer’s financial condition

D. Assessing possible collateral and signing the loan agreement

17. People who put money into banks are called….

A. Spread

B. Niche market

C. Bank staff

D. Depositors

18. Deposit accounts fall generally into one of two categories: ………….and……………

A. Transaction accounts and time accounts

B. Transaction accounts and time deposits

C. Transaction accounts and time account

D. Transaction deposit and time deposits

19. Which financial institution is not a depository intermediary?

A. Insurance company

B. Credit union

C. Commercial bank

D. Mutual savings bank

20. Which are the principal roles of a bank's investment portfolio played in banking operations?

A. Income stability

B. Offset credit risk

C. Backup liquidity

D. All of the above

21. Drew Davis goes to the commercial bank to ask for help in developing a financial plan and
making investment decisions. Which of the more recent services banks offer is Drew taking
advantage of?
C. $1,000

D. $1,110

26. Which investment instruments reach maturity within one year and are noted for their low risk
and ready marketability?

A. Capital market investment

B. Money market investment

C. Back-end load maturity policy

D. Front-end load maturity policy

27. Which insurance product protects the owner from the risk of injury to people and damage to
vehicles or other property in the event of an accident?

A. Credit insurance

B. Life insurance

C. Disability insurance

D. Auto insurance

28. Which statement is not true about trust services?

A. A trust is an arrangement by which one party holds property on behalf of another party for certain
defined purposes.

B. A trust is the person who creates a trust.

C. A trust is the person for whose benefit the property is held

D. All of above are incorrect.

29. An agreement where one party agrees to sell T-bills to another party and at the same time
agrees to buy them back at a set price is known as:

A. Repurchase agreement

B. Commercial paper

C. Federal Funds
D. Loan classification

34. Loans providing credit to finance the purchase of automobiles, appliances, retail goods and
services are classified under the category:

A. Real estate loans

B. Agricultural loans

C. Commercial and industrial loans

D. Consumer Loans to individuals

35. Which is the most common form of a transaction deposit account?

A. Checking account

B. Saving account

C. Bank account

D. Gmail account

36. A Fed Funds loan that is an unwritten agreement negotiated via wire or telephone with the
borrowed funds returned the next day is known as:

A. An overnight loan

B. A continuing contract

C. A term loan

D. None of the above

37. Antony/ Anthony opens saving account of $1000 for 1 year and receives upfront interest of
$100. Which two accounts on the bank's financial statement are going to be affected?

A. Deposit and non-interest income

B. Deposit and interest income

C. Deposit and interest expense

D. Deposit and non-interest expense

38. The______________ lists the uses and the sources of funds held by the bank on a given date.
C. Charitable remainder trusts

D. Living trusts

43. For many years, banks have used ….. to evaluate the potential creditworthiness of
loanapplicants.

A. Modern portfolio theory

B. Credit-scoring systems (hệ thống đánh giá điểm tín dụng)

C. Predatory lending

D. Bank products

44. Find the compound interest (Tìm tiền lãi) on $1000 at the rate of 8% per year for one and a-
haft years (1 năm rưỡi) when interest is compounded half yearly?

A. $124.86

B. $120.00

C. $127.04

D. $1124.86

TEST 1
Q1: When banks refuse to provide a loan, or when they lend less than the customer requested,
they are engaging in …

A. Credit rationing

B. Captive borrower

C. Moral Hazard

D. Securitization

Q2: HANA Bank’s loan portfolio includes 30% short-tẻm loan, 20% medium-tẻm loan and
50% long term loan. It is the loan classification by:

A. Loan purpose
 C. Periodically pay with monthly compounding interest

D. Periodically pay with quarterly compounding interest

Q6: Which of the following statements is not true about banking operations?

A. Bank’s assets include cash, loan, fixed assets and deposit from customer

B. Bank that sell deposits and make loans to individuals, households and small
businesses are known as retail bank

C. The role performed by banks in the economy in which they transform savings into
credit is known as the intermediation role.

D. Core operations of commercial bank are receiving deposits, credit extension and
providing payment services via accounts

Q7: Michael, a loan officer at First Bank, has been busy visiting local businesses to see if
any of them needs credit. Which step in the lending process is Michael performing?

A. Finding prospective customers

B. Making a site visit and evaluating a customer’s credit history

C. Evaluating a prospective customer’s financial condition

D. Assessing possible collateral and signing the loan agreement

Q8: Which are principal roles of bank’s investment portfolio played in

banking operation?

A. Income stability

B. Backup liquidity

C. Offset credit risk

D. All of the above answers are true

Q9: Taylor goes to the commercial bank to ask for help in developing a financial plan
and making investment decisions. Which of the most recent services banks offer is
Taylor taking advantage of?
 A. Report of Condition

B. Report of Cash flow

C. Report of Income

D. Notes to financial statement

Q14: If you borrow $5000 for a year with a loan fee of $10 interest totaling $500, Your
total payment will be:

A. $10

B. $500

C. $5000

D. $5510

Q15: … is an alternative to lending in which the financial institution purchases the

equipment and rents it to its customers.

A. Consumer loan

B. Trust service

C. Financial leasing service

D. Financial advice

Q16: A commercial bank is a highly financial leveraged business. This means:

A. The value of total assets on the balance sheet of commercial banks is very high

B. Total liability is much higher than the total equity capital of commercial
banks

C. The level of legal capital to establish a commercial bank is very high

D. Banks’ profits mainly come from lending activities to many entities in the economy

Q17: Find the compound interest on $1000 at the rate of 10% per year for one year
Q21: A bank places its $10,000 as the reserve requirement ratio into a demand account at
State Bank. Which items of the bank’s balance sheet would be affected?

A. Loans

B. Equity capital

C. Cash asset

D. Miscellaneous asset

Q22: Which factors affecting choice of investment securities?

A. Tax exposure

B. Inflation risk

C. Call risk

D. a, b and c are true

Q23: Which kind of trusts are established by a will and take effect at the
donor’s death?

A. Testamentary trusts

B. Charitable remainder trusts

C. Trustors

D. Living trusts

Q24: Which investment instruments reach maturity within one year and are noted for their
low risk and ready marketability?

A. Capital market investment

B. Money market investment

C. Back-end load maturity policy

D. Front-end load maturity policy

Q25: What is a yield curve?

 A. Personal loan

B. Lien

C. Ballon payment

D. Collateral

Q6: …. is reviewing a loan for soundness

A. Analyzing

B. Processing

C. Underwriting

D. Assessing

Q7: To ensure credit granting decisions are made in an accurate, efficiency run, banks
have written…

A. Loan policy

B. Credit-appoval procedures

C. Loan policy commitee

D. bank policy

Q8: Banks may sometimes grant a loan to an applicant who don’t meet standards
(không đáp ứng các tiêu chuẩn), grant a loan with certain conditions, or offer a loan
at…

A. Subprime rates

B. Indexed rates

C. Fixed rates

D. Varied rates

Q9: ….. is a record of how well one applicant has repaid debt in the past

A. Credit history
 B. Loan contrast

C. Covenant

D. Acceleration clause

Q14: A…. is an amount of time borrowers have to pay their bills in full and avoid any finance
charges

A. Loan term

B. Loan file

C. Grace period

D. Credit report

Q15: For many years, banks have used… to evaluate the potential creditworthiness of
loan applicants

A. Modern portfolio theory

B. Credit-scoring systems

C. Predatory lending

D. Bank products

TEST 3
Q1: In a Loan Agreement, _____________ are those things a borrower must do. They are
actions the borrower must take. Examples include filing periodic financial statements with
the bank and purchasing insurance on any collateral pledged.

A. Affirmative covenants (Các giao ước khẳng định)

B. negative covenants

C. Promissory note

D. Borrower Guaranties and Warranties

 c. Trust service

b. Security investment

d. Cash management

Question 6: A bank sells shares of its common stock with a par value of $200 for $300 in the market.

Which two accounts on the bank's balance sheet are g jag to be affected?

a. Retained earnings and capital surplus account:

b. Retained earnings and common stock outstanding accounts

c. Common stock outstanding and capital surplus accounts

d. Subordinated notes and debentures and commons stock outstanding account

Question 7: How much interest will be earned in the third year if $1,000 is deposited
that earns 8% interest compounded annually?

a. $593.31

b. $93.31

c. $105.62

d. $104.00

Question 8: Commercial bank finances the purchase of automobiles, mobile homes,

appliances, and other retail goods to repair and modernize homes. They are all classified
under which of following loan categories?

a. Financial institution loans

b. Commercial industrial

c. Loans to individuals

d. Real estate loans

Question 9: Which are principal roles of financial institution's investment portfolio

played in banking played in a banking operation?
 d. Collateral

Question 13: When a loan is considered uncollectible, the bank's accounting department will
write it off the books by increasing the _____________then reducing the
_____________accounts. Which choice below correctly fills in the blank in the preceding
sentence?

a. Allowance for loan losses: Gross Loans

b. Gross Loans; Allowance for loan losses

c. Allowance for loan losses; Net Loans

d. Net Loans: Allowance for loan losses

Question 14: _____________is an alternative to lending in which the financial institution

purchases the equipment and rents it to its customers.

a. Long-term Loan

c. Financial Advice

b. Trust service

d. Leasing service

Question 15: A(n) _____________is where the financial institution agrees to

guarantee repayment of a customer's loan received from a third party

a. Loan and Leasing.

b. Unused loan commitment

c. Standby credit agreement

d. Security investment

Question 16: Which of the following is not one of the capital market instruments in
which banks invest?

a. U.S. Treasury noles

b. Treasury bonds
The role performed by banks in the economy in which they transform savings into
credit is known as the intermediation role.

d. The loosening of government regulation and control of financial institutions is

called reregulation