Section 3: Financing Sources, Unit 1: Commercial Sources of Funds
Who or what entity directs the activities of credit unions? A board of directors A branch manager The head of the FDIC The NCUA chairperson
A board of directors
Which project would a life insurance company be most likely to finance? A room addition on an existing home A shopping mall A small church building New home construction
A shopping mall
Which of these items is a demand deposit? 401(k) retirement account Checking account Home equity line of credit Individual retirement account
Checking account
Commercial banks offer interim financing in the form of ______ loans. Construction Conventional Manufactured home Personal
Construction
Which banking-related entity shares similarities with the purpose and function of the NCUA? Department of Treasury FDIC Federal Reserve IRS
FDIC
Which person or entity works with many different lenders to find the best loan for the customer? Commercial bank Credit union Mortgage banker Mortgage broker
Mortgage broker
Mortgage bankers are mostly what type of enterprise? Closed Exclusive Private Public
Private
Which of the following types of residential dwellings do life insurance companies purchase from the secondary mortgage market? Blocks of condo units Commercial properties Single-family on one lot Undeveloped land
Single-family on one lot
Which of the following is true about mortgage brokers? They don't service the loan beyond placement. They originate their own loans. They're paid through fees from originating and servicing loans. They service the loan for its entire lifecycle.
They don't service the loan beyond placement.
Vantagestar Ltd. would like to construct a high-end condominium complex. Where will they likely go for financing this project? A commercial bank A credit union A life insurance company A mutual savings bank
A life insurance company