6. Which of the following is NOT a factor considered in evaluating a borrower’s creditworthiness?
a) Income level
b) Employment history
c) Age
d) Credit score
7. What is the purpose of loan covenants in lending operations?
a) To determine the loan amount
b) To set the interest rate on the loan
c) To establish repayment terms and conditions
d) To evaluate the borrower’s creditworthiness
8. Which of the following is a benefit of syndicated loans?
a) Lower interest rates
b) More flexible repayment terms
c) Reduced risk exposure for the lender
d) Increased availability of credit for the borrower
9. What is a grace period in lending operations?
a) A period of time during which the borrower is not required to make loan payments
b) A period of time during which the lender cannot charge interest on the loan
c) A period of time during which the borrower can apply for a loan extension
d) A period of time during which the lender evaluates the loan application
10. What is the purpose of loan documentation in lending operations?
a) To ensure legal compliance
b) To establish the borrower’s creditworthiness
c) To set the terms and conditions of the loan
d) To determine the loan amount
