6.4 Differentiate between Different Types of Consumer Lender Loan products Significant features They accept deposits and issue loans. Commercial Automobile loans banks Credit cards National banks must be member of the Federal Reserve System. Home improvement Loans (1 of 4).
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- List the ways in whichbanks deal with creditriskwhich of the following source of finance comes with a line of credit ? a. Credit card b. Mutual Fund c. Commercial Paper d. Supplier creditIn your opinion, do the following Bank Products fall into a Routine, Limited or Extensive product category. Explain your choice (a) Mortgage Loan (b) Credit Card (c) Travel Insurance Eartha anthar neare ALT₂C10/DC ALTEN+F10 (Mac)
- A bank is considering implementing a business rules management system for assessing the riskand creditworthiness of individuals as part of the loan approval process.• List and explain 3 benefits of such a system?• List 2 potential legal or ethical issues that might arise in the use of such a system14) Commercial banks grant short-term finance to business firms which is known as __________. a. Institutional credit b. Personal credit c. All d. Bank creditQUESTION 5 Which thrift institutions are cooperatively owned by their customers? A. Credit unions B. Mutual banks C. Savings and loans D. Commercial paper funds
- Extended by banks to qualified borrowers * investment unsecured loans stand-by credit financial adviseQuestion 13 Which of the following is most likely to be described as a depository institution? fınance companies securities firms credit unions pension funds insurance companiesUse the following information regarding the allocation of loan portfolios in different sectors for questions 1 - 2. Real Estate Commercial and Industrial Loans to Individuals Non-Depository Other National Banks O 1.99% O 6.30% O 3.97% 6.17% O 7,46% 38.66% 25.19% 13.38% 13.98% 8.79% Bank A 49.36% 28.80% 7.64% 8.88% 5.32% Bank B 35.06% 19.88% 28.93% 14.73% 1.40% What is Bank A's standard deviation of its asset allocation proportions relative to the national banks' average?
- What type of loan/s these banks offer? Explain how they use this type of loan among their clients.Commercial banks are the principal providers of loan finance to the household sector. Identify five different types of loan finance that a bank offers to individuals. Briefly explain the structure and operation of each of these types of loans.What is considered the most important and significant financial intermediry in our financial system? Give some services offered by a universal bank. Describe the nature of operations of insurance companies.