11. Which of the following is a disadvantage of lending operations for financial institutions?
a) Limited profit potential
b) Increased risk of default
c) Regulatory restrictions
d) Limited customer base
12. What is the role of collateral in a secured lending operation?
a) To provide additional income for the lender
b) To reduce the borrower’s credit risk
c) To determine the loan amount
d) To establish the repayment terms
13. What is the purpose of loan disbursement in lending operations?
a) To evaluate the borrower’s creditworthiness
b) To determine the loan amount
c) To transfer funds to the borrower
d) To set the repayment terms
14. Which of the following is a characteristic of peer-to-peer lending operations?
a) Centralized loan approval process
b) Lower interest rates for borrowers
c) Limited access to credit for borrowers
d) Limited risk for lenders
15. What is the purpose of loan servicing in lending operations?
a) To evaluate the loan applications
b) To set the interest rates on the loans
c) To manage the repayment process
d) To assess the borrower’s creditworthiness
