1.

Which is a loan backed only by the reputation and creditworthiness of the

borrower?

a. Construction loan

b. Real estate loan

c.Vehicle loan

d. Signature loan (unsecured loan, charater loan (có hoặc kh có tài sản đảm bảo))

2. The period that borrowers of credit card loans have to pay their bills in full and
avoid any finance charges is called?

A... is an amount of time borrowers have to pay their bills in full and avoid any
finance charges (là khoảng thời gian mà người vay phải thanh toán đầy đủ các hóa đơn
của họ và tránh bất kỳ khoản phí tài chính nào)

a. Loan term

b. Loan file

c. Grace period : thời gian ân hạn

d. Credit report

3. Which transactions affect interest income of a commercial bank?

Ngân hàng cho vay, thu lãi, mua bond trả coupon cho ngân hàng

Which of the following transactions do not affect interest income of commercial

banks?

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 government bond that bank is holding.

Which of following transactions DO NOT affect interest income of a

commercial bank? (không ảnh hưởng đến thu nhập lãi của ngân hàng)

a. the bank collected 100 million VND in interest payments from banks of TOAN
THANG GROUP
 b. the bank received 50 million VND as coupon payment of government bonds.

c. the bank recorded 15 million vnd as the amount of overdraft interest on the
deposit account of its customers.

d. Viet’s checking account is charged 22.000 VND monthly for internet banking
service. (Tài khoản séc của Việt bị tính phí 22.000 VND hàng tháng cho dịch vụ
ngân hàng trực tuyến.) => bên noninterest income

3b. Which of the following transactions DO NOT affect interest income of a

commercial bank?

The bank recorded $15 as the amount of overdraft interest on the deposit account of
its customers. liên quan đến interest income
Bank gains $25 from security investment by price difference
Bank received $10 as coupon payment of government bond that bank is holding
=> liên quan đến interest income
The bank collected $1 million in interest payments from loans of Intel composition
Corp. That was made earlier this year.

4. If you borrowed $1,000 for a year with a loan fee of $10 and interest totaling $100,
your finance charge will be? => $110

5. Asset transformation is defined.

-> deposit to loan

When banks transform deposits (liabilities) into assets loans, .... has occurred.
a. Modern portfolio theory

b. Asset transformation

c. Securitization

d. Consumer loan

6. The characteristics of installment loans and open-end loans?

An …. is a loan for which the amount of the payments, the rate of interest, and the
number of payments are fixed.

A. Education loan

B. Installment loan

C. Open-end loan

D. Unsecured loan

An open-end loan: number of payments không biết được

7. Single account and Joint account?

 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

An individual account, sometimes called…………., is owned by one person.

A. Joint account

B. Single account

C. Checking account

D. Check 21

8. 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 quarterly compounding interest

D. Periodically pay with monthly compounding interest

10* (1+ 6.7%/x)^x*0,5 = 10.3378 => x = 4 => hàng quý

9.Which one of the following banks could issue currency? (ngân hàng nào phát hành
tiền tệ)

Central bank ( The Reserve Bank)

10. 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?

= 20* (1+6,9%)^3 - 20*(1+6,9%)^2= $1,58

11. Allowance for possible loan losses is a 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..Provision for possible loan losses
 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 loans is called.....

A. Reserves account with the State Bank

B. Contingency Reserves

C. Allowance for possible loan losses

D. Provision for possible loan losses

The account that is subtracted (được trừ khỏi) from Gross Loans (tổng khoản
vay) on the Report of Condition (Balance sheet) is:

A. Loans and leases

B. Nonperforming loans

C. Allowance for possible loan losses

D. Provision for possible loan losses

12. 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

13. A bank that has total interest income of $67 million and total noninterest income
of $14 million. Its provision for loan losses (PLL) is $6 million, total interest expenses
of $35 million and total noninterest expenses (excluding PLL) of $28 million. This
bank's taxes are $5. What is this bank's net income after taxes?

= (67+14-6-35-28-5)=$7

14. How much will be in a savings account of $7,000 after one-and-a-half years?
Suppose that the interest rate is 7.3% per year and compounded half yearly.

A= 7000*(1+7.3%/2)^2*1.5= 7794,82

15. A bank's shaping the overall loan portfolio. gives loan officers specific guidelines
in making loan decisions and in shaping the overall loan portfolio

A bank’s ...... gives loan officers specific guidelines in making individual loan
decisions and in shaping the overall loan portfolio.
a. lending process

b. loan review

c. written loan policy (chính sách cho vay bằng văn bản)

d. loan classification

16. Antony opens a savings 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?

$1000 là deposit, $100 đối với ngân hàng là interest expense : chi phí lãi vay

When Antony opens a savings account and deposits $1000, two accounts on the
bank’s financial statement are affected:

Customer Deposits (Liabilities): This account increases by $1000 because

the bank owes this money to Antony. It’s a liability for the bank as it’s
an amount that the bank needs to repay to the customer upon demand.
Cash and Cash Equivalents (Assets): This account also increases by $1000.
When Antony deposits the money, the bank has more cash on hand, so
its assets increase.

When the bank pays Antony an upfront interest of $100:

 Interest Expense (Expenses): This account increases by $100. The interest
that the bank pays to Antony is an expense for the bank.
Cash and Cash Equivalents (Assets): This account decreases by $100.
When the bank pays out the interest, it has less cash on hand, so its
assets decrease.

17. The Bartholemew Bakery receives a lot of payments in cash. They deposit it in
their local bank who invests the money in an interest bearing account until it is
needed to pay bills. Which of the financial services banks offer is the Bartholemew
bakery taking advantage of?

A. Getting a consumer loan

B. Getting financial advice

C. Managing cash

D. Getting venture capital services

18. Which statement is true about trust services?

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

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

C. A trust is an arrangement by which one party holds property on behalf of

another party for certain defined purposes.
D. All above statements are incorrect.

19. The Wabash Washing Machine Company has arranged to get a loan from their
bank over the next five years. They can borrow up to a pre-specified limit and repay
it as many times as they need until the loan matures. The Wabash Washing Machine
Company has not pledged any specific collateral for this loan. What type of loan is
this mostly likely to be?

A. Lump-sum loan

B. Syndicated loan

C. Revolving line of credit

D. Non-Revolving loan

20. During the loan review process, if the customer is incapable of paying off loan
principal and/or interest in full within the agreed loan term, and is rated by the
credit institution as having capacity for fully repaying those, credit institutions agree
to change the agreed loan term from 5 years to 6 years. It's so called:

A. Extension of a loan term

B. Adjustment to a repayment period

C. Delinquent debt
D. Early repayment
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