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Multi-choice Question Aswering | When originating an adjustable rate mortgage, the lender’s cost and operating expense is covered via the:
A. Broker fee
B. Origination fee
C. Servicing fee
D. Margin
Answer:D | When originating an adjustable rate mortgage, the lender’s cost and operating expense is covered via the: | Answer:D | [
"A. Broker fee",
"B. Origination fee",
"C. Servicing fee",
"D. Margin"
] | null |
Multi-choice Question Aswering | LTV + _____ = 100%
A. DTI
B. PMI
C. Equity
D. APR
Answer:C | LTV + _____ = 100% | Answer:C | [
"A. DTI",
"B. PMI",
"C. Equity",
"D. APR"
] | null |
Multi-choice Question Aswering | How do principal pre-payments remitted against a fixed-rate loan balance affect the loan?
A. By reducing the term
B. By reducing the future payment amount
C. By reducing the overall interest expense
D. By reducing the term and overall interest expense
Answer:D | How do principal pre-payments remitted against a fixed-rate loan balance affect the loan? | Answer:D | [
"A. By reducing the term",
"B. By reducing the future payment amount",
"C. By reducing the overall interest expense",
"D. By reducing the term and overall interest expense"
] | null |
Multi-choice Question Aswering | Barry Borrower has a fixed rate loan. After winning big on a scratch-off lottery ticket, Barry wishes to reduce his principal balance by $50,000. After applying the principal reduction, Barry would prefer that his servicer reduce the payment amount and not the overall term. Barry calls his servicer to discuss:
A. A recast
B. An exception
C. Applying for a new loan
D. His frustration surrounding how principal pre-payments remitted against fixed-rate loan balances only reduce the term and not the payment amount
Answer:A | Barry Borrower has a fixed rate loan. After winning big on a scratch-off lottery ticket, Barry wishes to reduce his principal balance by $50,000. After applying the principal reduction, Barry would prefer that his servicer reduce the payment amount and not the overall term. Barry calls his servicer to discuss: | Answer:A | [
"A. A recast",
"B. An exception",
"C. Applying for a new loan",
"D. His frustration surrounding how principal pre-payments remitted against fixed-rate loan balances only reduce the term and not the payment amount"
] | null |
Multi-choice Question Aswering | A 7/1 Hybrid ARM:
A. Has an initially-stable interest rate for seven years and then adjusts annually for 23 years thereafter
B. Has an initially-stable interest rate for 23 years and then adjusts annually for 7 years thereafter
C. Has an initially-stable interest rate for 7 years and adjusts every seven years thereafter
D. Must be paid in full after 7 years
Answer:A | A 7/1 Hybrid ARM: | Answer:A | [
"A. Has an initially-stable interest rate for seven years and then adjusts annually for 23 years thereafter",
"B. Has an initially-stable interest rate for 23 years and then adjusts annually for 7 years thereafter",
"C. Has an initially-stable interest rate for 7 years and adjusts every seven years thereafter",
"D. Must be paid in full after 7 years"
] | null |
Multi-choice Question Aswering | All but which of the following are conditions included in the right to conditionally modify a balloon loan?
A. The new rate cannot be more than 6% higher than the initial rate
B. The home must be owner-occupied
C. The balloon loan must be the only lien
D. The loan must be current
Answer:A | All but which of the following are conditions included in the right to conditionally modify a balloon loan? | Answer:A | [
"A. The new rate cannot be more than 6% higher than the initial rate",
"B. The home must be owner-occupied",
"C. The balloon loan must be the only lien",
"D. The loan must be current"
] | null |
Multi-choice Question Aswering | 30/15 refers to:
A. A 30-year loan that balloons at 15 years and lacks a conditional right to modify
B. A 15-year loan that balloons in 15 years and has a conditional right to modify
C. A 15-year loan that balloons in 15 years and lacks a conditional right to modify
D. A 30-year loan that balloons in 15 years and has a conditional right to modify
Answer:A | 30/15 refers to: | Answer:A | [
"A. A 30-year loan that balloons at 15 years and lacks a conditional right to modify",
"B. A 15-year loan that balloons in 15 years and has a conditional right to modify",
"C. A 15-year loan that balloons in 15 years and lacks a conditional right to modify",
"D. A 30-year loan that balloons in 15 years and has a conditional right to modify"
] | null |
Multi-choice Question Aswering | What is a benefit of securing a balloon loan?
A. It’s a short-term loan
B. The interest rate may be lower than an ARM start rate or a standard fixed-rate loan
C. It has very easy underwriting criteria
D. The customer does not have to worry about qualifying
Answer:B | What is a benefit of securing a balloon loan? | Answer:B | [
"A. It’s a short-term loan",
"B. The interest rate may be lower than an ARM start rate or a standard fixed-rate loan",
"C. It has very easy underwriting criteria",
"D. The customer does not have to worry about qualifying"
] | null |
Multi-choice Question Aswering | An ARM start rate that is more than 3% below FIAR is known as a ______ rate:
A. Discount
B. Teaser
C. Temporary
D. Floating
Answer:B | An ARM start rate that is more than 3% below FIAR is known as a ______ rate: | Answer:B | [
"A. Discount",
"B. Teaser",
"C. Temporary",
"D. Floating"
] | null |
Multi-choice Question Aswering | Charlie Chancetaker likes the low interest rate offered by the 360/60 balloon loan on which he settles. He is not worried about going into foreclosure because his company transfers him every four years and he intends to sell the home and pay off the loan well in advance of the balloon call. Which of the following would not represent a possible problem when the time to address the balloon call arrives?
A. He might not meet one of the conditions of modification
B. His home might be worth less than what he owes when the time arrives to sell
C. He might no longer be working for his employer in four years and therefore won’t be transferred
D. He might still work for his employer but his employer might not transfer him
Answer:A | Charlie Chancetaker likes the low interest rate offered by the 360/60 balloon loan on which he settles. He is not worried about going into foreclosure because his company transfers him every four years and he intends to sell the home and pay off the loan well in advance of the balloon call. Which of the following would not represent a possible problem when the time to address the balloon call arrives? | Answer:A | [
"A. He might not meet one of the conditions of modification",
"B. His home might be worth less than what he owes when the time arrives to sell",
"C. He might no longer be working for his employer in four years and therefore won’t be transferred",
"D. He might still work for his employer but his employer might not transfer him"
] | null |
Multi-choice Question Aswering | HECM stands for:
A. Home Equity Conversion Mortgage
B. Home Equity Conventional Mortgage
C. Home Equivalent Consensus Mortgage
D. Housing Education Consistency Mandate
Answer:A | HECM stands for: | Answer:A | [
"A. Home Equity Conversion Mortgage",
"B. Home Equity Conventional Mortgage",
"C. Home Equivalent Consensus Mortgage",
"D. Housing Education Consistency Mandate"
] | null |
Multi-choice Question Aswering | Jennifer is a 30-year old home buyer. In order to close on the purchase of her new home, she will need to bring $65,750 to the settlement table. Her only asset from which she intends to secure this money is her 401(k) account bearing a face value of $75,500. Jennifer demonstrates that she is the owner of the account, confirms that the account is vested, and that it allows for withdrawals regardless of her current employment status. As such, will Jennifer be able to close on her loan?
A. Yes - she has satisfied all conditions and has enough money to cover all cash needed to close
B. Yes – she has satisfied all conditions and has enough cash needed to close once she liquidates the money in her retirement account and maintains a paper trail
C. No - she has not documented receipt of the funds to close
D. Yes - she has satisfied all conditions and has enough cash needed to close once she liquidates the money in her retirement account, maintains a paper trail, and has provided the terms of her account’s liquidity
Answer:C | Jennifer is a 30-year old home buyer. In order to close on the purchase of her new home, she will need to bring $65,750 to the settlement table. Her only asset from which she intends to secure this money is her 401(k) account bearing a face value of $75,500. Jennifer demonstrates that she is the owner of the account, confirms that the account is vested, and that it allows for withdrawals regardless of her current employment status. As such, will Jennifer be able to close on her loan? | Answer:C | [
"A. Yes - she has satisfied all conditions and has enough money to cover all cash needed to close",
"B. Yes – she has satisfied all conditions and has enough cash needed to close once she liquidates the money in her retirement account and maintains a paper trail",
"C. No - she has not documented receipt of the funds to close",
"D. Yes - she has satisfied all conditions and has enough cash needed to close once she liquidates the money in her retirement account, maintains a paper trail, and has provided the terms of her account’s liquidity"
] | null |
Multi-choice Question Aswering | Barry is told that he is lacking reserves and may not be able to close. What might he use to supplement his assets?
A. A liquid whole life insurance policy containing a cash value
B. An asset statement from a blood relative along with an affidavit guaranteeing the use of these funds if Barry ever needed them
C. A liquid term life insurance policy
D. His mint 1967 Chevrolet Camaro convertible
Answer:A | Barry is told that he is lacking reserves and may not be able to close. What might he use to supplement his assets? | Answer:A | [
"A. A liquid whole life insurance policy containing a cash value",
"B. An asset statement from a blood relative along with an affidavit guaranteeing the use of these funds if Barry ever needed them",
"C. A liquid term life insurance policy",
"D. His mint 1967 Chevrolet Camaro convertible"
] | null |
Multi-choice Question Aswering | If a borrower has a mutual fund, how much of the fund’s face value may be used to satisfy reserve requirements?
A. 70%
B. 60%
C. 100%
D. 80%
Answer:C | If a borrower has a mutual fund, how much of the fund’s face value may be used to satisfy reserve requirements? | Answer:C | [
"A. 70%",
"B. 60%",
"C. 100%",
"D. 80%"
] | null |
Multi-choice Question Aswering | Which of the following loans would require MIP?
A. A conventional mortgage with an 85% initial LTV
B. An FHA mortgage after a 35% down payment
C. A USDA mortgage with an initial LTV of 82%
D. A 100% LTV VA mortgage
Answer:B | Which of the following loans would require MIP? | Answer:B | [
"A. A conventional mortgage with an 85% initial LTV",
"B. An FHA mortgage after a 35% down payment",
"C. A USDA mortgage with an initial LTV of 82%",
"D. A 100% LTV VA mortgage"
] | null |
Multi-choice Question Aswering | If an applicant discloses that she is a party to a lawsuit, what should the loan originator request?
A. Nothing since, as a plaintiff, there is no lender concern
B. Evidence of her position as a plaintiff
C. Evidence that the lawsuit has been resolved
D. An application cannot be processed if an applicant is actively involved in litigation
Answer:B | If an applicant discloses that she is a party to a lawsuit, what should the loan originator request? | Answer:B | [
"A. Nothing since, as a plaintiff, there is no lender concern",
"B. Evidence of her position as a plaintiff",
"C. Evidence that the lawsuit has been resolved",
"D. An application cannot be processed if an applicant is actively involved in litigation"
] | null |
Multi-choice Question Aswering | When is an applicant obligated to disclose child support payments as a liability?
A. Any time he or she is paying child support
B. Whenever there is any sort of agreement between two individuals for the payment of support
C. Individuals are not required to disclose the payment of child support since it is considered a private matter between two people
D. Any time there is an order of support requiring the applicant to pay child support
Answer:D | When is an applicant obligated to disclose child support payments as a liability? | Answer:D | [
"A. Any time he or she is paying child support",
"B. Whenever there is any sort of agreement between two individuals for the payment of support",
"C. Individuals are not required to disclose the payment of child support since it is considered a private matter between two people",
"D. Any time there is an order of support requiring the applicant to pay child support"
] | null |
Multi-choice Question Aswering | What is another term for the URLA?
A. FNMA form 1004
B. FNMA form 1003
C. FNMA form 1070
D. FNMA form 1099
Answer:B | What is another term for the URLA? | Answer:B | [
"A. FNMA form 1004",
"B. FNMA form 1003",
"C. FNMA form 1070",
"D. FNMA form 1099"
] | null |
Multi-choice Question Aswering | How many pages of a savings account statement must a loan originator request from an applicant?
A. Just the first one reflecting the account balance
B. All pages
C. All pages except for any intentionally left blank
D. Just the summary pages
Answer:B | How many pages of a savings account statement must a loan originator request from an applicant? | Answer:B | [
"A. Just the first one reflecting the account balance",
"B. All pages",
"C. All pages except for any intentionally left blank",
"D. Just the summary pages"
] | null |
Multi-choice Question Aswering | If an individual is only an obligated co-signer to a debt, why may they have to qualify for their mortgage counting that debt?
A. Just to be safe
B. They won't have to qualify counting the debt if they can clearly demonstrate that they are only an obligated co-signer
C. As an obligated co-signer, they have agreed to accept liability for that debt and would be responsible for its repayment in the event that the person for whom they co-signed defaulted
D. An obligated co-signer is never required to qualify considering any debt for which they co-signed
Answer:C | If an individual is only an obligated co-signer to a debt, why may they have to qualify for their mortgage counting that debt? | Answer:C | [
"A. Just to be safe",
"B. They won't have to qualify counting the debt if they can clearly demonstrate that they are only an obligated co-signer",
"C. As an obligated co-signer, they have agreed to accept liability for that debt and would be responsible for its repayment in the event that the person for whom they co-signed defaulted",
"D. An obligated co-signer is never required to qualify considering any debt for which they co-signed"
] | null |
Multi-choice Question Aswering | Which of the following debts does not have to be considered in an applicant’s DTIs?
A. Obligatory alimony payments with fewer than 10 months remaining
B. A credit card minimum payment equal to the total amount owed
C. A boat loan with 11 months remaining
D. A deferred payment on living room furniture recently purchased with no payment owed for 18 months
Answer:A | Which of the following debts does not have to be considered in an applicant’s DTIs? | Answer:A | [
"A. Obligatory alimony payments with fewer than 10 months remaining",
"B. A credit card minimum payment equal to the total amount owed",
"C. A boat loan with 11 months remaining",
"D. A deferred payment on living room furniture recently purchased with no payment owed for 18 months"
] | null |
Multi-choice Question Aswering | What is the appropriate documentation to secure from an applicant disclosing that she is a permanent resident alien?/strong>
A. A certificate of authenticity from her country of citizenship's consulate
B. Residential mortgage financing may only be extended to citizens of the United States
C. A copy of her entry visa
D. A copy of the front and back of her valid permanent resident alien card
Answer:D | What is the appropriate documentation to secure from an applicant disclosing that she is a permanent resident alien?/strong> | Answer:D | [
"A. A certificate of authenticity from her country of citizenship's consulate",
"B. Residential mortgage financing may only be extended to citizens of the United States",
"C. A copy of her entry visa",
"D. A copy of the front and back of her valid permanent resident alien card"
] | null |
Multi-choice Question Aswering | For what does VVOE stand?
A. Visual verification or evaluation
B. Visual verification of entitlement
C. Verbal verification of employment
D. Visual verification of employment
Answer:C | For what does VVOE stand? | Answer:C | [
"A. Visual verification or evaluation",
"B. Visual verification of entitlement",
"C. Verbal verification of employment",
"D. Visual verification of employment"
] | null |
Multi-choice Question Aswering | Anyone applying for a reverse mortgage must have:
A. A single-family property
B. Completed independent, third-party homeownership counseling before closing
C. Never previously had a reverse mortgage
D. A life estate
Answer:B | Anyone applying for a reverse mortgage must have: | Answer:B | [
"A. A single-family property",
"B. Completed independent, third-party homeownership counseling before closing",
"C. Never previously had a reverse mortgage",
"D. A life estate"
] | null |
Multi-choice Question Aswering | Once a loan estimate has been issued, when is the first opportunity that the loan may close?
A. After three general business days
B. After seven precise business days
C. After seven general business days
D. After three precise business days
Answer:B | Once a loan estimate has been issued, when is the first opportunity that the loan may close? | Answer:B | [
"A. After three general business days",
"B. After seven precise business days",
"C. After seven general business days",
"D. After three precise business days"
] | null |
Multi-choice Question Aswering | A loan officer takes an application on Friday. His business fully operates Monday through Saturday. By when must the loan estimate be issued?
A. Tuesday
B. Wednesday
C. By close of business that day
D. Within seven days prior to closing
Answer:A | A loan officer takes an application on Friday. His business fully operates Monday through Saturday. By when must the loan estimate be issued? | Answer:A | [
"A. Tuesday",
"B. Wednesday",
"C. By close of business that day",
"D. Within seven days prior to closing"
] | null |
Multi-choice Question Aswering | If the closing disclosure is sent to the customer electronically on Monday, when would the first opportunity to close be?
A. Thursday
B. Friday
C. Tuesday of the following week
D. Saturday
Answer:C | If the closing disclosure is sent to the customer electronically on Monday, when would the first opportunity to close be? | Answer:C | [
"A. Thursday",
"B. Friday",
"C. Tuesday of the following week",
"D. Saturday"
] | null |
Multi-choice Question Aswering | Which of the following is not one of the three primary credit repositories?
A. Trans Union
B. Experian
C. Equifax
D. CAIVRS
Answer:D | Which of the following is not one of the three primary credit repositories? | Answer:D | [
"A. Trans Union",
"B. Experian",
"C. Equifax",
"D. CAIVRS"
] | null |
Multi-choice Question Aswering | If a property is worth $750,000 and the borrower has a first mortgage of $227,000 and a second mortgage of $125,000, what is the LTV and CLTV?
A. 30/17
B. 30/47
C. 17/30
D. 47/30
Answer:B | If a property is worth $750,000 and the borrower has a first mortgage of $227,000 and a second mortgage of $125,000, what is the LTV and CLTV? | Answer:B | [
"A. 30/17",
"B. 30/47",
"C. 17/30",
"D. 47/30"
] | null |
Multi-choice Question Aswering | If two loans together achieve an 83% CLTV and the second loan is at 23% LTV, what is the LTV of the first loan?
A. 23%
B. 106%
C. 60%
D. 37%
Answer:C | If two loans together achieve an 83% CLTV and the second loan is at 23% LTV, what is the LTV of the first loan? | Answer:C | [
"A. 23%",
"B. 106%",
"C. 60%",
"D. 37%"
] | null |
Multi-choice Question Aswering | A property is worth $325,000. The homeowners owe a first mortgage of $112,000 along with a $70,000 home equity line of credit of which $45,000 is currently outstanding. What is the property’s TLTV?
A. 34%
B. 14%
C. 48%
D. 56%
Answer:D | A property is worth $325,000. The homeowners owe a first mortgage of $112,000 along with a $70,000 home equity line of credit of which $45,000 is currently outstanding. What is the property’s TLTV? | Answer:D | [
"A. 34%",
"B. 14%",
"C. 48%",
"D. 56%"
] | null |
Multi-choice Question Aswering | An ARM is currently at 3.25% and set to adjust. The index is currently at 1.125% and the margin has been established at 4.25%. To what will the borrower’s interest rate adjust?
A. 7.5%
B. 5.375%
C. 4.375%
D. 8.625%
Answer:B | An ARM is currently at 3.25% and set to adjust. The index is currently at 1.125% and the margin has been established at 4.25%. To what will the borrower’s interest rate adjust? | Answer:B | [
"A. 7.5%",
"B. 5.375%",
"C. 4.375%",
"D. 8.625%"
] | null |
Multi-choice Question Aswering | A borrower purchased a home for $300,000 and their LTV is 80%. They paid $3,600 in discount points. How many points did they pay?
A. 2
B. 4
C. 3.5
D. 1.5
Answer:D | A borrower purchased a home for $300,000 and their LTV is 80%. They paid $3,600 in discount points. How many points did they pay? | Answer:D | [
"A. 2",
"B. 4",
"C. 3.5",
"D. 1.5"
] | null |
Multi-choice Question Aswering | A buyer purchases a home for which the seller pledges to fund a 2-1 buydown. The buyer’s note rate results in a payment of $1,200. If the 2-1 buydown would have the buyer remitting a P&I payment of $1,075 for year one and $1,107 for year two, how much did the 2-1 buydown cost the seller?
A. $2,182
B. $3,000
C. $2,616
D. $3,382
Answer:C | A buyer purchases a home for which the seller pledges to fund a 2-1 buydown. The buyer’s note rate results in a payment of $1,200. If the 2-1 buydown would have the buyer remitting a P&I payment of $1,075 for year one and $1,107 for year two, how much did the 2-1 buydown cost the seller? | Answer:C | [
"A. $2,182",
"B. $3,000",
"C. $2,616",
"D. $3,382"
] | null |
Multi-choice Question Aswering | If a buyer decides to buy a home for $175,000, put 10% down, and pay 1.5% in discount points, how much money will he spend on points?
A. $2,362.50
B. $2,625.00
C. $262.50
D. $236.25
Answer:A | If a buyer decides to buy a home for $175,000, put 10% down, and pay 1.5% in discount points, how much money will he spend on points? | Answer:A | [
"A. $2,362.50",
"B. $2,625.00",
"C. $262.50",
"D. $236.25"
] | null |
Multi-choice Question Aswering | If a buyer refinances his loan, his monthly P&I will drop by $175 to $1,025. If his monthly real estate taxes are $125, his monthly homeowner’s insurance is $60, and his income is $72,000 annually. What was his previous housing expense?
A. 20%
B. 23%
C. 19%
D. 17%
Answer:B | If a buyer refinances his loan, his monthly P&I will drop by $175 to $1,025. If his monthly real estate taxes are $125, his monthly homeowner’s insurance is $60, and his income is $72,000 annually. What was his previous housing expense? | Answer:B | [
"A. 20%",
"B. 23%",
"C. 19%",
"D. 17%"
] | null |
Multi-choice Question Aswering | If a borrower chooses an above-par interest rate that results in a closing cost credit of 2%, how much would her settlement costs be reduced assuming a purchase price of $230,000 and a down payment of 15%?
A. $4,600
B. $690
C. $3,910
D. $2,932
Answer:C | If a borrower chooses an above-par interest rate that results in a closing cost credit of 2%, how much would her settlement costs be reduced assuming a purchase price of $230,000 and a down payment of 15%? | Answer:C | [
"A. $4,600",
"B. $690",
"C. $3,910",
"D. $2,932"
] | null |
Multi-choice Question Aswering | A buyer buys a home for $395,000 and puts 25% down. What is the amount of his down payment?
A. $97,850
B. $296,250
C. $98,750
D. $74,062
Answer:C | A buyer buys a home for $395,000 and puts 25% down. What is the amount of his down payment? | Answer:C | [
"A. $97,850",
"B. $296,250",
"C. $98,750",
"D. $74,062"
] | null |
Multi-choice Question Aswering | A buyer’s loan amount is $225,000 on a $410,000 purchase price. How much was her down payment and what percent of the purchase price was it?
A. $185,000/55
B. $225,000/45
C. $225,000/55
D. $185,000/45
Answer:D | A buyer’s loan amount is $225,000 on a $410,000 purchase price. How much was her down payment and what percent of the purchase price was it? | Answer:D | [
"A. $185,000/55",
"B. $225,000/45",
"C. $225,000/55",
"D. $185,000/45"
] | null |
Multi-choice Question Aswering | A buyer wishes to purchase a home for $310,000 and has $30,000 for a down payment. He wishes to avoid paying PMI. What is the easiest way to structure this transaction using piggyback financing?
A. Originate a $290,000 loan amount
B. It cannot be done - the borrower will have to have PMI or come up with a larger down payment
C. Originate a $248,000 first mortgage and a $30,000 second mortgage
D. Originate a $248,000 first mortgage and a $32,000 second mortgage
Answer:D | A buyer wishes to purchase a home for $310,000 and has $30,000 for a down payment. He wishes to avoid paying PMI. What is the easiest way to structure this transaction using piggyback financing? | Answer:D | [
"A. Originate a $290,000 loan amount",
"B. It cannot be done - the borrower will have to have PMI or come up with a larger down payment",
"C. Originate a $248,000 first mortgage and a $30,000 second mortgage",
"D. Originate a $248,000 first mortgage and a $32,000 second mortgage"
] | null |
Multi-choice Question Aswering | A purchase price is $400,000 and the buyer wishes to apply $30,000 as a down payment. The seller is offering a 3% seller’s concession. What is the value of the seller’s concessions?
A. $900
B. $11,100
C. $12,000
D. $10,000
Answer:C | A purchase price is $400,000 and the buyer wishes to apply $30,000 as a down payment. The seller is offering a 3% seller’s concession. What is the value of the seller’s concessions? | Answer:C | [
"A. $900",
"B. $11,100",
"C. $12,000",
"D. $10,000"
] | null |
Multi-choice Question Aswering | If a borrower’s income is $6,500 per month, his back-end DTI is 32%, and his monthly, non-housing related expenses amount to $1,115, what is the total of his housing expense?
A. $2,080
B. $965
C. $356.80
D. $4,160
Answer:B | If a borrower’s income is $6,500 per month, his back-end DTI is 32%, and his monthly, non-housing related expenses amount to $1,115, what is the total of his housing expense? | Answer:B | [
"A. $2,080",
"B. $965",
"C. $356.80",
"D. $4,160"
] | null |
Multi-choice Question Aswering | A borrower is buying a home for $110,000 and has $15,000 to put down on a conventional mortgage. The home appraises for $125,000. Will she need to pay PMI?
A. No - with the higher value the LTV will be 76% and PMI will no longer be required
B. Yes - even though the value came in higher, the lender must utilize the lower purchase price when calculating the initial LTV
C. It depends on whether or not the automated underwriting system requires PMI
D. Yes - the purchase price will have to be raised to meet the value
Answer:B | A borrower is buying a home for $110,000 and has $15,000 to put down on a conventional mortgage. The home appraises for $125,000. Will she need to pay PMI? | Answer:B | [
"A. No - with the higher value the LTV will be 76% and PMI will no longer be required",
"B. Yes - even though the value came in higher, the lender must utilize the lower purchase price when calculating the initial LTV",
"C. It depends on whether or not the automated underwriting system requires PMI",
"D. Yes - the purchase price will have to be raised to meet the value"
] | null |
Multi-choice Question Aswering | A mortgage originator advises a customer to consider accepting a higher interest rate in order to subsidize his settlement charges since he has no other funds. The borrower is qualified for the payment at the higher interest rate. This is:
A. Legal and ethical
B. Legal and unethical
C. Illegal and ethical
D. Illegal and unethical
Answer:A | A mortgage originator advises a customer to consider accepting a higher interest rate in order to subsidize his settlement charges since he has no other funds. The borrower is qualified for the payment at the higher interest rate. This is: | Answer:A | [
"A. Legal and ethical",
"B. Legal and unethical",
"C. Illegal and ethical",
"D. Illegal and unethical"
] | null |
Multi-choice Question Aswering | Which of the following actions would constitute an ethical violation?
A. Promising reciprocal referrals to a potential referral source
B. Offering to pay $100 for each referral received
C. Mailing thank-you cards in response to referrals
D. Conducting joint marketing endeavors
Answer:B | Which of the following actions would constitute an ethical violation? | Answer:B | [
"A. Promising reciprocal referrals to a potential referral source",
"B. Offering to pay $100 for each referral received",
"C. Mailing thank-you cards in response to referrals",
"D. Conducting joint marketing endeavors"
] | null |
Multi-choice Question Aswering | Advertising a product that sounds too good to be true, telling inquirers that the product has been discontinued, and attempting to sell them something else is an unethical example of:
A. Rope-a-dope advertising
B. Hide and seek sales tactics
C. Bait and switch advertising
D. False comparison
Answer:C | Advertising a product that sounds too good to be true, telling inquirers that the product has been discontinued, and attempting to sell them something else is an unethical example of: | Answer:C | [
"A. Rope-a-dope advertising",
"B. Hide and seek sales tactics",
"C. Bait and switch advertising",
"D. False comparison"
] | null |
Multi-choice Question Aswering | A loan originator informs a customer pursuing a stated income loan of what income amount must be stated in order to make the loan work. This is an ethical violation because:
A. The customer didn’t ask the loan originator before being informed
B. A loan originator may not prompt a customer
C. It is not an ethical violation because it is a stated loan and income really does not matter
D. The loan originator is a party to the transaction
Answer:B | A loan originator informs a customer pursuing a stated income loan of what income amount must be stated in order to make the loan work. This is an ethical violation because: | Answer:B | [
"A. The customer didn’t ask the loan originator before being informed",
"B. A loan originator may not prompt a customer",
"C. It is not an ethical violation because it is a stated loan and income really does not matter",
"D. The loan originator is a party to the transaction"
] | null |
Multi-choice Question Aswering | The overall governing entity of the mortgage industry is:
A. The CSBS
B. The NMLS&R
C. The CFPB
D. HUD
Answer:C | The overall governing entity of the mortgage industry is: | Answer:C | [
"A. The CSBS",
"B. The NMLS&R",
"C. The CFPB",
"D. HUD"
] | null |
Multi-choice Question Aswering | Which of the following communications would be acceptable to direct to an appraiser?
A. I need the property value to come in at no less than $250,000
B. I need the property value to come in at no greater than $250,000
C. If you wish to be paid, you will need to re-value this home to a higher value
D. Would you please explain why you came up with the value that you did
Answer:D | Which of the following communications would be acceptable to direct to an appraiser? | Answer:D | [
"A. I need the property value to come in at no less than $250,000",
"B. I need the property value to come in at no greater than $250,000",
"C. If you wish to be paid, you will need to re-value this home to a higher value",
"D. Would you please explain why you came up with the value that you did"
] | null |
Multi-choice Question Aswering | A Realtor refers his client to the mortgage originator of a company in which the real estate company has an ownership interest. The Realtor provides an ABAD advising the customer of the ownership interest and makes him aware that he is free to use the services of any mortgage professional. The Realtor:
A. Complied with the law but conducted his business unethically
B. Complied with the law and conducted his business ethically
C. Violated the law but conducted his business ethically
D. Violated the law and conducted his business unethically
Answer:B | A Realtor refers his client to the mortgage originator of a company in which the real estate company has an ownership interest. The Realtor provides an ABAD advising the customer of the ownership interest and makes him aware that he is free to use the services of any mortgage professional. The Realtor: | Answer:B | [
"A. Complied with the law but conducted his business unethically",
"B. Complied with the law and conducted his business ethically",
"C. Violated the law but conducted his business ethically",
"D. Violated the law and conducted his business unethically"
] | null |
Multi-choice Question Aswering | A title company hosts a holiday party and invites members of the real estate community from which it has received and to which it has referred business throughout the previous year. Food and drinks are served at the party. The actions of the hosts and attendees are:
A. Legal since it is simply expressing and accepting appreciation for the year's business
B. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering both the hosts and guests in violation of RESPA
C. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the hosts in violation of RESPA
D. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the guests in violation of RESPA
Answer:B | A title company hosts a holiday party and invites members of the real estate community from which it has received and to which it has referred business throughout the previous year. Food and drinks are served at the party. The actions of the hosts and attendees are: | Answer:B | [
"A. Legal since it is simply expressing and accepting appreciation for the year's business",
"B. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering both the hosts and guests in violation of RESPA",
"C. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the hosts in violation of RESPA",
"D. Illegal since items of value (food & drink) are being provided to actual or potential referral sources rendering the guests in violation of RESPA"
] | null |
Multi-choice Question Aswering | A home inspector messengers a mortgage company a box of chocolates around holiday time. Upon delivery, the mortgage company’s receptionist politely refuses the delivery. Who has violated RESPA?
A. Both the home inspector and the mortgage company
B. The mortgage company
C. The home inspector
D. Neither the mortgage company nor the home inspector
Answer:C | A home inspector messengers a mortgage company a box of chocolates around holiday time. Upon delivery, the mortgage company’s receptionist politely refuses the delivery. Who has violated RESPA? | Answer:C | [
"A. Both the home inspector and the mortgage company",
"B. The mortgage company",
"C. The home inspector",
"D. Neither the mortgage company nor the home inspector"
] | null |
Multi-choice Question Aswering | A mortgage originator conducts a seminar teaching Realtors about a new mortgage product. During this seminar, the mortgage originator serves lunch to the attendees. Which of the following statements apply?
A. Both the mortgage originator and the Realtors violated RESPA since they are potential referral sources and the served lunch is a thing of value
B. Both the mortgage originator and the Realtors remained compliant because the purpose of the gathering was educational
C. The mortgage originator violated RESPA but the Realtors remained compliant
D. The mortgage originator remained compliant but the Realtors violated RESPA
Answer:B | A mortgage originator conducts a seminar teaching Realtors about a new mortgage product. During this seminar, the mortgage originator serves lunch to the attendees. Which of the following statements apply? | Answer:B | [
"A. Both the mortgage originator and the Realtors violated RESPA since they are potential referral sources and the served lunch is a thing of value",
"B. Both the mortgage originator and the Realtors remained compliant because the purpose of the gathering was educational",
"C. The mortgage originator violated RESPA but the Realtors remained compliant",
"D. The mortgage originator remained compliant but the Realtors violated RESPA"
] | null |
Multi-choice Question Aswering | What would the most ethical response be to a potential mortgage applicant who asks, “How much income do I need to earn in order to qualify for a purchase price of $325,000?”
A. We look at 36% of your gross monthly income, subtract out your monthly expenses, and that leaves what's available for your monthly mortgage payment
B. It would be great if you earned $6,000 a month or more, wink wink
C. Why don't we review your pay stubs, tax returns, and asset statements to calculate your income
D. It depends on the strength of your credit
Answer:C | What would the most ethical response be to a potential mortgage applicant who asks, “How much income do I need to earn in order to qualify for a purchase price of $325,000?” | Answer:C | [
"A. We look at 36% of your gross monthly income, subtract out your monthly expenses, and that leaves what's available for your monthly mortgage payment",
"B. It would be great if you earned $6,000 a month or more, wink wink",
"C. Why don't we review your pay stubs, tax returns, and asset statements to calculate your income",
"D. It depends on the strength of your credit"
] | null |
Multi-choice Question Aswering | The term “Caveat Emptor” means:
A. Let those with food get fat
B. Let the qualified be awarded
C. Let the buyer beware
D. Unity for all
Answer:C | The term “Caveat Emptor” means: | Answer:C | [
"A. Let those with food get fat",
"B. Let the qualified be awarded",
"C. Let the buyer beware",
"D. Unity for all"
] | null |
Multi-choice Question Aswering | Redlining refers to:
A. Conducting predatory lending practices in a particular geographic area
B. Avoiding particular geographic areas based on perceived characteristics of the area's inhabitants
C. Rushing a mortgage application through the system
D. Applying extra scrutiny against a particular customer's mortgage application
Answer:B | Redlining refers to: | Answer:B | [
"A. Conducting predatory lending practices in a particular geographic area",
"B. Avoiding particular geographic areas based on perceived characteristics of the area's inhabitants",
"C. Rushing a mortgage application through the system",
"D. Applying extra scrutiny against a particular customer's mortgage application"
] | null |
Multi-choice Question Aswering | A cursory walk-through prior to closing may be an indication of:
A. Someone trying to hide something
B. A last-minute need to see the property before closing
C. The person conducting the walk-through being in a rush
D. An opportunity for the borrower to back out of the transaction
Answer:A | A cursory walk-through prior to closing may be an indication of: | Answer:A | [
"A. Someone trying to hide something",
"B. A last-minute need to see the property before closing",
"C. The person conducting the walk-through being in a rush",
"D. An opportunity for the borrower to back out of the transaction"
] | null |
Multi-choice Question Aswering | Reverse Redlining refers to:
A. Intentionally avoiding qualified geographic areas
B. Intentionally avoiding unqualified geographic areas
C. Intentionally pursuing predatory lending in particular geographic locations
D. Intentionally pursuing predatory lending
Answer:C | Reverse Redlining refers to: | Answer:C | [
"A. Intentionally avoiding qualified geographic areas",
"B. Intentionally avoiding unqualified geographic areas",
"C. Intentionally pursuing predatory lending in particular geographic locations",
"D. Intentionally pursuing predatory lending"
] | null |
Multi-choice Question Aswering | If a HOEPA loan is originated for purposes of home improvement:
A. The proceeds may be fully disbursed to the home improvement contractor
B. The proceeds may be fully disbursed to the home improvement contractor with the customer's permission
C. The proceeds may be retained by the lender and issued to the home improvement contractor at a future date agreed upon by all interested parties
D. The proceeds may be issued to and managed by a third-party escrow company that is agreed upon by all parties
Answer:D | If a HOEPA loan is originated for purposes of home improvement: | Answer:D | [
"A. The proceeds may be fully disbursed to the home improvement contractor",
"B. The proceeds may be fully disbursed to the home improvement contractor with the customer's permission",
"C. The proceeds may be retained by the lender and issued to the home improvement contractor at a future date agreed upon by all interested parties",
"D. The proceeds may be issued to and managed by a third-party escrow company that is agreed upon by all parties"
] | null |
Multi-choice Question Aswering | The main objective of HOEPA is to prevent:
A. Charging too much
B. Pre-payment penalties
C. Predatory lending
D. Discrimination
Answer:C | The main objective of HOEPA is to prevent: | Answer:C | [
"A. Charging too much",
"B. Pre-payment penalties",
"C. Predatory lending",
"D. Discrimination"
] | null |
Multi-choice Question Aswering | If a loan originator discovers an address on a credit report that the applicant didn’t mentioned, s/he should:
A. Ignore it since it probably isn’t important
B. Have the application declined
C. Complete a SAR
D. Question the applicant about it and add it to the application if necessary
Answer:D | If a loan originator discovers an address on a credit report that the applicant didn’t mentioned, s/he should: | Answer:D | [
"A. Ignore it since it probably isn’t important",
"B. Have the application declined",
"C. Complete a SAR",
"D. Question the applicant about it and add it to the application if necessary"
] | null |
Multi-choice Question Aswering | Identifying and justifying funds appearing on an asset statement is called:
A. Syncing and sourcing
B. Sourcing and seasoning
C. Sounding and seasoning
D. Sourcing and sounding
Answer:B | Identifying and justifying funds appearing on an asset statement is called: | Answer:B | [
"A. Syncing and sourcing",
"B. Sourcing and seasoning",
"C. Sounding and seasoning",
"D. Sourcing and sounding"
] | null |
Multi-choice Question Aswering | Falsely representing a low property value to a lender is an example of:
A. Flipping
B. Appraisal fraud
C. Flopping
D. Chunking
Answer:C | Falsely representing a low property value to a lender is an example of: | Answer:C | [
"A. Flipping",
"B. Appraisal fraud",
"C. Flopping",
"D. Chunking"
] | null |
Multi-choice Question Aswering | What was one purpose of implementing a centralized system of mortgage licensing?
A. To reduce the number of industry regulators
B. To implement a centralized system for tracking mortgage professionals
C. To generate revenue for the federal government
D. To reduce and limit the number of loan originators
Answer:B | What was one purpose of implementing a centralized system of mortgage licensing? | Answer:B | [
"A. To reduce the number of industry regulators",
"B. To implement a centralized system for tracking mortgage professionals",
"C. To generate revenue for the federal government",
"D. To reduce and limit the number of loan originators"
] | null |
Multi-choice Question Aswering | The SAFE Act implements:?
A. The ceiling of standards to which mortgage professionals must adhere
B. A floor of standards to which individual states may add their own qualifications
C. Guidelines to which mortgage professionals are encouraged to adhere
D. Guidelines to which individual states may choose to enforce
Answer:B | The SAFE Act implements:? | Answer:B | [
"A. The ceiling of standards to which mortgage professionals must adhere",
"B. A floor of standards to which individual states may add their own qualifications",
"C. Guidelines to which mortgage professionals are encouraged to adhere",
"D. Guidelines to which individual states may choose to enforce"
] | null |
Multi-choice Question Aswering | What is the definition of a Mortgage Loan Originator in accordance with the SAFE Act?
A. An individual who negotiates mortgage loans
B. An individual who takes a mortgage loan application
C. An individual who takes a mortgage loan application for compensation or gain
D. An individual who profits from mortgage origination
Answer:C | What is the definition of a Mortgage Loan Originator in accordance with the SAFE Act? | Answer:C | [
"A. An individual who negotiates mortgage loans",
"B. An individual who takes a mortgage loan application",
"C. An individual who takes a mortgage loan application for compensation or gain",
"D. An individual who profits from mortgage origination"
] | null |
Multi-choice Question Aswering | Which of the following individuals would be considered a mortgage loan originator?
A. A Realtor who refers a customer to a mortgage company for home financing
B. An attorney who secures a mortgage loan for a client pursuing a divorce
C. A homeowner selling and financing his own primary residence
D. A Realtor who is compensated by a mortgage broker
Answer:D | Which of the following individuals would be considered a mortgage loan originator? | Answer:D | [
"A. A Realtor who refers a customer to a mortgage company for home financing",
"B. An attorney who secures a mortgage loan for a client pursuing a divorce",
"C. A homeowner selling and financing his own primary residence",
"D. A Realtor who is compensated by a mortgage broker"
] | null |
Multi-choice Question Aswering | Which of the following individuals would not be required to secure a mortgage originator license?
A. A mortgage loan officer who worked for a bank but transferred over to a mortgage brokerage
B. A financial planner who sells mortgages among many other financial products
C. An individual who only sells timeshare plans
D. An investor who buys over 25 properties annually, sells them, and personally arranges for their financing
Answer:C | Which of the following individuals would not be required to secure a mortgage originator license? | Answer:C | [
"A. A mortgage loan officer who worked for a bank but transferred over to a mortgage brokerage",
"B. A financial planner who sells mortgages among many other financial products",
"C. An individual who only sells timeshare plans",
"D. An investor who buys over 25 properties annually, sells them, and personally arranges for their financing"
] | null |
Multi-choice Question Aswering | Which of the following individuals requires a mortgage originator license?
A. A clerk who secures callers' names and the locations of the properties for which they desire financing and refers them to licensed loan originators
B. A clerk who completes a 1003 before referring a caller to the appropriate loan originator
C. A processor who simply processes files and does not discuss loan parameters with applicants
D. An underwriter who reviews files and renders lending decisions
Answer:B | Which of the following individuals requires a mortgage originator license? | Answer:B | [
"A. A clerk who secures callers' names and the locations of the properties for which they desire financing and refers them to licensed loan originators",
"B. A clerk who completes a 1003 before referring a caller to the appropriate loan originator",
"C. A processor who simply processes files and does not discuss loan parameters with applicants",
"D. An underwriter who reviews files and renders lending decisions"
] | null |
Multi-choice Question Aswering | Which of the following is not a part of the mortgage licensing application process?
A. Submitting fingerprints
B. Authorizing obtainment of a credit report
C. Checking professional references
D. Demonstrating fiscal responsibility
Answer:C | Which of the following is not a part of the mortgage licensing application process? | Answer:C | [
"A. Submitting fingerprints",
"B. Authorizing obtainment of a credit report",
"C. Checking professional references",
"D. Demonstrating fiscal responsibility"
] | null |
Multi-choice Question Aswering | Which of the following credit issues is ignored during the licensing review?
A. Bankruptcy within the previous three years
B. Minimally-derogative financial matters within the previous three years
C. Medical collection accounts
D. Foreclosures within the previous three years
Answer:C | Which of the following credit issues is ignored during the licensing review? | Answer:C | [
"A. Bankruptcy within the previous three years",
"B. Minimally-derogative financial matters within the previous three years",
"C. Medical collection accounts",
"D. Foreclosures within the previous three years"
] | null |
Multi-choice Question Aswering | If an individual were to have her mortgage license revoked in a particular state she:
A. Would never be able to receive a license in that state again
B. Would lose her license in all other states and not be able to secure another one
C. Would be eligible for reinstatement after five years
D. Would be unaffected in other states in which she was licensed
Answer:B | If an individual were to have her mortgage license revoked in a particular state she: | Answer:B | [
"A. Would never be able to receive a license in that state again",
"B. Would lose her license in all other states and not be able to secure another one",
"C. Would be eligible for reinstatement after five years",
"D. Would be unaffected in other states in which she was licensed"
] | null |
Multi-choice Question Aswering | Which of the following topics is not part of the standard 20-hour pre-licensing education requirement?
A. 3 hours of federal law
B. 2 hours of standards for non-traditional mortgage lending
C. 12 hours of electives
D. 3 hours of General Mortgage Knowledge
Answer:D | Which of the following topics is not part of the standard 20-hour pre-licensing education requirement? | Answer:D | [
"A. 3 hours of federal law",
"B. 2 hours of standards for non-traditional mortgage lending",
"C. 12 hours of electives",
"D. 3 hours of General Mortgage Knowledge"
] | null |
Multi-choice Question Aswering | By what date would a mortgage loan originator who fails to renew her license by December 31st have to renew it in order to avoid repeating the entire licensing process?
A. January 1st
B. February 1st
C. The last day of February
D. March 1st
Answer:C | By what date would a mortgage loan originator who fails to renew her license by December 31st have to renew it in order to avoid repeating the entire licensing process? | Answer:C | [
"A. January 1st",
"B. February 1st",
"C. The last day of February",
"D. March 1st"
] | null |
Multi-choice Question Aswering | The National Mortgage Licensing Exam, containing the UST component, consists of how many questions?
A. 100
B. 125
C. 75
D. 110
Answer:B | The National Mortgage Licensing Exam, containing the UST component, consists of how many questions? | Answer:B | [
"A. 100",
"B. 125",
"C. 75",
"D. 110"
] | null |
Multi-choice Question Aswering | How many hours of continuing education are generally needed annually for a licensed loan originator to renew his license?
A. 10
B. 20
C. 8
D. 12
Answer:C | How many hours of continuing education are generally needed annually for a licensed loan originator to renew his license? | Answer:C | [
"A. 10",
"B. 20",
"C. 8",
"D. 12"
] | null |
Multi-choice Question Aswering | What is the Model State Law?
A. A document to guide states in implementing the legislation required by the SAFE Act
B. A law to track loan originators, initially enacted by the State of Georgia, that was modeled by other states
C. A law requiring all states to participate in the NMLS&R
D. A law that states are to use when establishing disciplinary guidelines
Answer:A | What is the Model State Law? | Answer:A | [
"A. A document to guide states in implementing the legislation required by the SAFE Act",
"B. A law to track loan originators, initially enacted by the State of Georgia, that was modeled by other states",
"C. A law requiring all states to participate in the NMLS&R",
"D. A law that states are to use when establishing disciplinary guidelines"
] | null |
Multi-choice Question Aswering | What was one of the primary motivations for the creation of a UST?
A. Loan originators were complaining about having to take so many exams
B. Conducting exams for all of the states was becoming too expensive
C. The questions on state exams were often redundant
D. Loan originators were taking too long to become licensed
Answer:C | What was one of the primary motivations for the creation of a UST? | Answer:C | [
"A. Loan originators were complaining about having to take so many exams",
"B. Conducting exams for all of the states was becoming too expensive",
"C. The questions on state exams were often redundant",
"D. Loan originators were taking too long to become licensed"
] | null |
Multi-choice Question Aswering | What is one of the SAFE Act’s main objectives?
A. To protect the consumer from unscrupulous mortgage professionals
B. To limit the types of available mortgage programs
C. To generate revenue for states
D. To require lenders to consider applicants’ ability to repay
Answer:A | What is one of the SAFE Act’s main objectives? | Answer:A | [
"A. To protect the consumer from unscrupulous mortgage professionals",
"B. To limit the types of available mortgage programs",
"C. To generate revenue for states",
"D. To require lenders to consider applicants’ ability to repay"
] | null |
Multi-choice Question Aswering | How long does a mortgage license remain in effect before requiring renewal?
A. One year
B. Two years
C. Three years
D. Six months
Answer:A | How long does a mortgage license remain in effect before requiring renewal? | Answer:A | [
"A. One year",
"B. Two years",
"C. Three years",
"D. Six months"
] | null |
Multi-choice Question Aswering | Which of the following committees has submitted its recommendations on the possible tax rate under GST?
A. TSR Subramanian Committee
B. Dr Arvind Subramanian Committee
C. Rangrajan Committee
D. Vimal Jala Committee
Answer:B | Which of the following committees has submitted its recommendations on the possible tax rate under GST? | Answer:B | [
"A. TSR Subramanian Committee",
"B. Dr Arvind Subramanian Committee",
"C. Rangrajan Committee",
"D. Vimal Jala Committee"
] | Explanation: Committee headed by the Chief Economic Adviser Dr. Arvind Subramanian on Possible Tax rates under GST submits its Report to the Finance Minister; On the Revenue Neutral Rate (RNR), the Committee recommends the same in the range between 15 percent and 15.5 percent (Centre and states combined) with a preference for the lower end of that range based on the analysis made in the Report. |
Multi-choice Question Aswering | Which of the following statement(s) is/are correct?
A. Only I
B. I and II
C. I and III
D. All of the above
Answer:D | Which of the following statement(s) is/are correct? | Answer:D | [
"A. Only I",
"B. I and II",
"C. I and III",
"D. All of the above"
] | Explanation: “Small” savings schemes were initially created to mobilise saving by encouraging “small earners” to save, and offered above market deposit rates in accessible locations like post offices for this purpose. Recent discussions have focused on one efficiency cost of “small” savings schemes – how they hinder monetary policy transmission. Because small savings schemes offer high and fixed deposit rates (within year) and compete with banks, it is difficult for banks to reduce their own deposit rates and hence pass on policy rate cuts to consumers in form of lower lending rates. Recently, the government has reduced rates on some small savings schemes to make them more responsive to market conditions. |
Multi-choice Question Aswering | Which among the following companies is not a Public Sector Companies in India?
A. IRCL
B. IIFCL
C. Hindustan Zinc
D. PFC
Answer:C | Which among the following companies is not a Public Sector Companies in India? | Answer:C | [
"A. IRCL",
"B. IIFCL",
"C. Hindustan Zinc",
"D. PFC"
] | Explanation: The government-owned corporations are termed as Public Sector Undertakings (PSUs) in India. In a PSU majority (51% or more) of the paid up share capital is held by central government or by any state government or partly by the central governments and partly by one or more state governments. Hindustan Zinc is Private Sector Company in India. |
Multi-choice Question Aswering | Merit goods and services are:
A. Merit goods are those goods and services that the government feels that people will over-consume, and which ought to be taxed at the point of use so that over consumption does not happened by well of households.
B. Merit goods are those goods and services that the government feels that people will under-consume, and which ought to be subsidised or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service.
C. A good which harms the consumer, for example, people don’t realise or ignore the costs of doing something e.g. smoking, drugs.
D. Those goods and services which have negative externalities.
Answer:B | Merit goods and services are: | Answer:B | [
"A. Merit goods are those goods and services that the government feels that people will over-consume, and which ought to be taxed at the point of use so that over consumption does not happened by well of households.",
"B. Merit goods are those goods and services that the government feels that people will under-consume, and which ought to be subsidised or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service.",
"C. A good which harms the consumer, for example, people don’t realise or ignore the costs of doing something e.g. smoking, drugs.",
"D. Those goods and services which have negative externalities."
] | Explanation: Merit goods are those goods and services that the government feels that people will under-consume, and which ought to be subsidised or provided free at the point of use so that consumption does not depend primarily on the ability to pay for the good or service. Both the state and private sector provide merit goods & services. We have an independent education system and people can buy private health care insurance. |
Multi-choice Question Aswering | Which of the following statement(s) is/are correct?
A. Only I
B. I and II
C. I and III
D. All of the above
Answer:B | Which of the following statement(s) is/are correct? | Answer:B | [
"A. Only I",
"B. I and II",
"C. I and III",
"D. All of the above"
] | Explanation: Merit and Demerit goods involve making a value judgement that something is good or bad for you. Examples of Demerit goods are smoking, drinking, takings drugs etc. |
Multi-choice Question Aswering | Which of the following statements is incorrect regarding the nature of subsidies?
A. Implicit subsidies include utilization of such techniques as exchange rate manipulation, price controls, and quantitative restrictions on trade, as well as other methods of manipulating the terms of trade either for or against farmers.
B. Explicit agricultural subsidies include such programmes as government purchases of agricultural surpluses and government payments to farmers to keep land idle.
C. In case of explicit subsidy, there are governmental budgetary outlays while in case of implicit subsidy, supply prices are suppressed.
D. In case of implicit subsidy, there are governmental budgetary outlays while in case of explicit subsidy, supply prices are suppressed.
Answer:D | Which of the following statements is incorrect regarding the nature of subsidies? | Answer:D | [
"A. Implicit subsidies include utilization of such techniques as exchange rate manipulation, price controls, and quantitative restrictions on trade, as well as other methods of manipulating the terms of trade either for or against farmers.",
"B. Explicit agricultural subsidies include such programmes as government purchases of agricultural surpluses and government payments to farmers to keep land idle.",
"C. In case of explicit subsidy, there are governmental budgetary outlays while in case of implicit subsidy, supply prices are suppressed.",
"D. In case of implicit subsidy, there are governmental budgetary outlays while in case of explicit subsidy, supply prices are suppressed."
] | Explanation: Generally, the Subsidies are government policies in aid of one or more industries, usually carrying a financial benefit to the industry. At the most conventional level, subsidies are government financial transfers to an industry, through payments to workers or to firms. Probably nobody would deny that the government is subsidizing the industry if it is paying part of the wages of workers in the industry or it is granting firms in the industry funds to make capital purchases. This is the narrowest definition of a subsidy. |
Multi-choice Question Aswering | The demerit goods should be taxed at
A. Higher rate
B. Lower rate
C. Tax free
D. Subsidised
Answer:A | The demerit goods should be taxed at | Answer:A | [
"A. Higher rate",
"B. Lower rate",
"C. Tax free",
"D. Subsidised"
] | Explanation: The demerit goods should be taxed at high rate while in case of merit goods, tax should be at lower rate. Goods that account for a large share of expenditures of poorer households, such as food, will typically be merit goods, and should therefore be taxed at low rates, made exempt from taxation, or even subsidized. |
Multi-choice Question Aswering | What is Revenue Neutral Rate?
A. Taxing procedure that allows the government to still receive the same amount of money despite changes in tax laws.
B. Taxing procedure that allows the government to still receive the higher amount of money despite no changes in tax laws.
C. Taxing procedure that allows the government to receive the lower amount of money despite changes in tax laws.
D. Taxing procedure that allows the government to receive the higher amount of money despite no changes in tax laws.
Answer:A | What is Revenue Neutral Rate? | Answer:A | [
"A. Taxing procedure that allows the government to still receive the same amount of money despite changes in tax laws.",
"B. Taxing procedure that allows the government to still receive the higher amount of money despite no changes in tax laws.",
"C. Taxing procedure that allows the government to receive the lower amount of money despite changes in tax laws.",
"D. Taxing procedure that allows the government to receive the higher amount of money despite no changes in tax laws."
] | Explanation: Taxing procedure that allows the government to still receive the same amount of money despite changes in tax laws. The government may lower taxes for one particular group of people, but raise taxes for another group. This allows the revenue that they receive to remain unchanged (neutral). |
Multi-choice Question Aswering | Which of the following statement(s) is/are correct?
A. Only I
B. Only II
C. Both of I and II
D. None of the above
Answer:C | Which of the following statement(s) is/are correct? | Answer:C | [
"A. Only I",
"B. Only II",
"C. Both of I and II",
"D. None of the above"
] | Explanation: Reserve Bank of India (RBI) has allowed Non-resident Indians (NRIs) to invest in the National Pension System (NPS), under Foreign Exchange Management Act. The subscription amounts shall be paid by NRIs by inward remittance through normal banking channels or out of funds held in their non-resident external, foreign currency non-repatriable, or non-resident ordinary (NRO) accounts. There shall be no restriction on repatriation of the annuity or accumulated savings. Presently, the minimum investment limit per year under NPS Tier-I account is Rs 6000/-. |
Multi-choice Question Aswering | Which year is set as target to achieve 100 GW by solar energy ?
A. 2020
B. 2022
C. 2025
D. 2030
Answer:B | Which year is set as target to achieve 100 GW by solar energy ? | Answer:B | [
"A. 2020",
"B. 2022",
"C. 2025",
"D. 2030"
] | Explanation: National Solar Mission is an initiative of the Government of India and State Governments to promote solar power as a part of the National Action Plan on Climate Change. On 11 January 2010, The mission was inaugurated by former Prime Minister Manmohan Singh with a target of 20GW by 2022 which was then increased by the Modi government to 100 GW by 2022. |
Multi-choice Question Aswering | British Prime Minister Boris Johnson has finalized which date for Brexit?
A. September 30th
B. October 1st
C. October 31st
D. November 30th
Answer:C | British Prime Minister Boris Johnson has finalized which date for Brexit? | Answer:C | [
"A. September 30th",
"B. October 1st",
"C. October 31st",
"D. November 30th"
] | Explanation: British Prime Minister Boris Johnson stated recently that the United Kingdom will leave the European Union on October 31, 2019. Johnson stated that the Brexit referendum must be respected and that the goverrget of 20GW by 2022 which was then increased by the Modi government to 100 GW by 2022. |
Multi-choice Question Aswering | Which politician was arrested by CBI on 21st August 2019?
A. Vijay Malya
B. P Chidambaram
C. Shivraj Singh
D. Pragya Thakur
Answer:B | Which politician was arrested by CBI on 21st August 2019? | Answer:B | [
"A. Vijay Malya",
"B. P Chidambaram",
"C. Shivraj Singh",
"D. Pragya Thakur"
] | Explanation: Former finance minister P. Chidambaram was arrested by CBI Team from his Jor Bagh residence in New Delhi on 21st August 2019. In a dramatic twist to the day long drama with news channels and the ruling government questioning former Finance Minister P. Chidambaram's alleged attempts at "evading" arrest, he appeared at the Congress headquarters. Mr. Chidambaram said that in last 24 hours much has happened that has caused much confusion and concern to many. He said he was aghast that he was accused of hiding from a law. Later he went to his Jor Bagh residence. A team of CBI officials have also reached there and arrested. ...........Check More at INDIA GK" App: tinyurl.com/IndiaGK |
Multi-choice Question Aswering | Which part of the body is the odd one out?
A. triceps
B. hamstring
C. clavicle
D. flexor
Answer:C | Which part of the body is the odd one out? | Answer:C | [
"A. triceps",
"B. hamstring",
"C. clavicle",
"D. flexor"
] | null |
Multi-choice Question Aswering | The author of the book ‘The Piano Teacher” is —
A. Allen Hollinghraust
B. Vangari Maathai
C. Alfred Jelineek
D. None of these
Answer:C | The author of the book ‘The Piano Teacher” is — | Answer:C | [
"A. Allen Hollinghraust",
"B. Vangari Maathai",
"C. Alfred Jelineek",
"D. None of these"
] | null |
Multi-choice Question Aswering | The second President of the Indian National Congress’ was —
A. Sardar Vallabhbhai Patel
B. Badruddin Taiyabjee
C. Mahatma Gandhi
D. None of these
Answer:D | The second President of the Indian National Congress’ was — | Answer:D | [
"A. Sardar Vallabhbhai Patel",
"B. Badruddin Taiyabjee",
"C. Mahatma Gandhi",
"D. None of these"
] | null |
Multi-choice Question Aswering | The disease due to lack of Vitamin ‘E’ is called —
A. blindness
B. Rickets
C. Problem in delivery of child.
D. Ben-ben
Answer:C | The disease due to lack of Vitamin ‘E’ is called — | Answer:C | [
"A. blindness",
"B. Rickets",
"C. Problem in delivery of child.",
"D. Ben-ben"
] | null |
Multi-choice Question Aswering | The work of Comptroller and Auditor-General is monitored by —
A. Estimate Committee
B. President
C. Prime Minister
D. None of these
Answer:B | The work of Comptroller and Auditor-General is monitored by — | Answer:B | [
"A. Estimate Committee",
"B. President",
"C. Prime Minister",
"D. None of these"
] | null |
Multi-choice Question Aswering | Who among the following is called as the “Father of Missiles”?
A. Abdul Kalam
B. Raja Ramanna
C. P. Chidambaram
D. None of these
Answer:A | Who among the following is called as the “Father of Missiles”? | Answer:A | [
"A. Abdul Kalam",
"B. Raja Ramanna",
"C. P. Chidambaram",
"D. None of these"
] | null |
Multi-choice Question Aswering | Which among the following statements is true regarding the writ. Habeaas Corpus’?
A. A prisoner will have to appear in court within one month
B. A prisoner will have to appear in court within twenty-four hours
C. A prisoner can move freely
D. None of these
Answer:B | Which among the following statements is true regarding the writ. Habeaas Corpus’? | Answer:B | [
"A. A prisoner will have to appear in court within one month",
"B. A prisoner will have to appear in court within twenty-four hours",
"C. A prisoner can move freely",
"D. None of these"
] | null |
Multi-choice Question Aswering | The first sitting of Constituent Assembly was held on —
A. 9th December, 1947
B. 9th December, 1946
C. 26th January, 1947
D. 26th January, 1946
Answer:B | The first sitting of Constituent Assembly was held on — | Answer:B | [
"A. 9th December, 1947",
"B. 9th December, 1946",
"C. 26th January, 1947",
"D. 26th January, 1946"
] | null |
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