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1.
Financial institutions make real estate loans primarily to businesses seeking to acquire income property.
False. They make real estate loans for many purposes, including to individuals seeking to buy homes and to businesses seeking to acquire many different types of property.
2.
Typically, loans to other financial institutions make up _______ of a lender's loan portfolio.
Less than 5%. Typically, they make up a small portion of the loan portfolio.
3.
Sometimes a business may lease equipment from a commercial financial institution instead of a retailer or other supplier.
True. In some cases, the customer may buy the item after the lease has ended.
4.
All of the following are consumer loans except _______.
A loan to complete a business merger. A loan to launch a new enterprise is a business loan.
5.
A working-capital loan is usually for a long period of five or 10 years.
False. A working-capital loan is usually for a short period of time.