A Bank or Any Other Lender Whose Loans Are Pooled

question 90

Multiple Choice

A bank or any other lender whose loans are pooled is called:

• A)the originator.
• B)the special-purpose entity.
• C)the trustee.
• D)the servicer.
• E)the credit enhancer.

Understand the impact of interest rates on present and future values.

Calculate the carrying value of investments in bonds.

Compute payments for loans and leases using time value of money concepts.

Determine the best financial option between lump sum and annuity payments.

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Definitions:

Social Needs

Fundamental human desires to belong to groups, including family, friends, and co-workers, and to be accepted by others.

Need For Achievement

A psychological drive or motivation to accomplish tasks, achieve excellence, and overcome obstacles.

Motives

Internal drives that prompt individuals to take action or behave in a certain way.

Internal Locus

An individual's belief that they can control their own destiny through their decisions and actions.