21. What is the purpose of loan refinancing in lending operations?
a) To extend the loan repayment term
b) To reduce the interest rate on the loan
c) To increase the loan amount
d) To evaluate the borrower’s creditworthiness
22. Which of the following is a characteristic of microfinance lending operations?
a) Large loan amounts
b) Exclusive focus on high net worth individuals
c) Limited credit risk for lenders
d) Financial services for low-income individuals
23. What is the role of loan officers in lending operations?
a) To evaluate loan applications
b) To set the interest rates on loans
c) To assess the collateral value
d) To manage the loan repayment process
24. Which of the following is a factor that determines the interest rate on a loan?
a) Borrower’s age
b) Borrower’s employment history
c) Borrower’s credit score
d) Borrower’s income level
25. What is the purpose of loan classification in lending operations?
a) To determine the loan amount
b) To assess the loan’s riskiness
c) To evaluate the borrower’s creditworthiness
d) To set the repayment terms
