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Bafin Quiz

The document is a quiz for students covering various aspects of mortgages and financial instruments. It includes true or false questions as well as multiple-choice questions related to mortgage types, terms, and investment vehicles. The quiz aims to assess the students' understanding of key financial concepts and practices.

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12 views4 pages

Bafin Quiz

The document is a quiz for students covering various aspects of mortgages and financial instruments. It includes true or false questions as well as multiple-choice questions related to mortgage types, terms, and investment vehicles. The quiz aims to assess the students' understanding of key financial concepts and practices.

Uploaded by

fbwgk5dmbq
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
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BAFIN QUIZ

NAME OF STUDENT

YEAR AND SECTION ;

ANSWER THE FOLLOWING

1. TRUE OR FALSE
1. Mortgages are long term debt secured by real estate.
2. The old mortgage lender has continued to refine the long term debt
to make it more desirable to borrower.
3. The mortgage market has become very competitive in recent years.
4. Generally, short term mortgages have smaller interest rates than
short term mortgages.
5. Mortgage loans contracts contains may legal and financial terms,
most of which protect the lender from financial loss.
6. One characteristic common to mortgage loans is the requirement
that collateral ,usually the real estate being finance be pledged as
security.
7. To obtain a mortgage loan, the lender also requires the borrower to
make a down payment on the property , that is, to pay a portion of
the purchase price.
8. Before granting a mortgage loan, the lender will determine whether
the borrower qualifies for it.
9. Mortgage loan borrowers generally agree to pay a monthly amount
to principal and interest that will be fully amortized by its maturity.
10. Fully amortized means that the payments will pay off the
outstanding indebtedness by the time the loan matures .

11. MULTIPLE CHOICES.

1. These are originated by banks or other mortgage lenders but are not
guaranteed by government or government controlled entities .
a. Adjustable rate mortgages
b. Fixed rate mortgages
c. Insured mortgage
d. Conventional mortgages
2. These mortgages are originated by banks or other mortgage lenders
but are guaranteed by either the government or government
controlled entities .
a. Adjustable rate mortgages
b. Fixed rate mortgages
c. Insured mortgage
d. Conventional mortgages
3. The interest rate and the monthly payment do not vary over the life
of the mortgage.
a. Adjustable rate mortgage
b. Fixed rate mortgages
c. Insured mortgage
d. Conventional mortgages
4. The interest rate is tied to some market interest rate.
a. Adjustable rate mortgage
b. Fixed rate mortgages
c. Insured mortgage
d. Conventional mortgages
5. These mortgages are useful for home buyers who expect income to
rise.
a. Graduated payment mortgage
b. Growing equity mortgage
c. Shared appreciation mortgage
d. Equity participating mortgage
6. An outside investor shares in the appreciation of the property
a. Graduated payment mortgage
b. Growing equity mortgage
c. Shared appreciation mortgage
d. Equity participating mortgage
7. The payments will initially be the same as on a conventional
mortgage .
a. Graduated payment mortgage
b. Growing equity mortgage
c. Shared appreciation mortgage
d. Equity participating mortgage
8. The lender lowers the interest rate in the mortgage in exchange for
a share of any appreciation in the real estate .
a. Graduated payment mortgage
b. Growing equity mortgage
c. Shared appreciation mortgage
d. Equity participating mortgage
9. An outside investor shares in the appreciation of property.
a. Equity participating mortgage
b. Second mortgage
c. Reverse annuity mortgages
d. None of the above
10. These are loans that are secured by the same real estate that
is used to secure the first mortgage .
a. Equity participating mortgage
b. Second mortgage
c. Reverse annuity mortgage
d. None of the above
11. The bank advances funds to the owner on a monthly schedule
to enable him to meet living expenses , he thereby increasing the
balance of the loan which is secured by the real estate.
a. Equity participating mortgage
b. Second mortgage
c. Reverse annuity mortgage
d. None of the above.
12. Is an agreement between seller and buyer that requires that
seller to deliver a particular commodity at a designated future date ,
at a predetermined price.
a. Foreign currency futures
b. Options
c. Forward contracts
d. Future contracts
13. It is not traded on a market change .
a. Foreign currency futures
b. Options
c. Forward contracts
d. Future contracts
14. Gives its holder the right either to buy or sell , at a specified
price and within a given time period
a. Foreign currency futures
b. Options
c. Forward contracts
d. Future contracts
15. Foreign loans frequently are denominated in the currency of
the lender.
a. Foreign currency futures
b. Options
c. Forward contracts
d. Future contracts
16. Pool money from multiple investors and invest in diversified
portfolio of securities such as stocks , bonds and other assets .
a. Mutual funds
b. Hedge funds
c. Insurance companies
d. Pension funds
e. Algorithmic traders
17. Primarily collect premiums from policy holders to provide
financial protection against certain risk
a. Mutual funds
b. Hedge funds
c. Insurance companies
d. Pension funds
e. Algorithmic traders

18 are privately managed investment funds that typically cater to high net
worth individuals and institutional investors

a. Mutual funds
b. Hedge funds
c. Insurance companies
d. Pension funds
e. Algorithmic traders
18. Are investment vehicles established by employers to provide
retirement benefits to their employees .
a. Mutual funds
b. Hedge funds
c. Insurance companies
d. Pension funds
e. Algorithmic traders

19. Known as quantitative or systematic traders , use computer


algorithm to execute trades in financial market.
a. Mutual funds
b. Hedge funds
c. Insurance companies
d. Pension funds
e. Algorithmic traders
20. It is the ongoing process of identifying , analyzing m
evaluating and treating loss exposure.

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