Here are some MCQs on Lending Operations
1. Which of the following is NOT a type of lending operation?
a) Mortgage loans
b) Personal loans
c) Equity investments
d) Business loans
2. Which of the following parties is NOT involved in a lending operation?
a) Lender
b) Borrower
c) Regulator
d) Auditor
3. What is the primary purpose of a lending operation for a financial institution?
a) To generate profit through interest income
b) To provide financial support to individuals and businesses
c) To diversify the institution’s investment portfolio
d) To attract new customers to the institution
4. Which of the following is a common characteristic of secured loans?
a) Higher interest rates
b) Longer repayment terms
c) Collateral provided by the borrower
d) Limited creditworthiness requirements
5. What is a credit rating used for in lending operations?
a) To determine the borrower’s risk of default
b) To set the interest rate on the loan
c) To evaluate the loan application
d) To determine the loan amount
