PFM Global Chapter 5

The cost of financing a project or asset using debt is —

Which of the following is a function of financial professional towards his client regarding use of debt?

Which of the following factors are considered by the lender while evaluating the potential borrower?

Which of the following factors affect the credit score of a person?

“—is almost always amortizing or reducing loans over a finite period

By making regular payments on the mortgage the borrower is said to be “—” the mortgage

An —-shows how much interest and principal the mortgagor repays with each monthly payment.

Which of the following function can be used to calculate the EMI of loan?

When deciding which credit cards to get —–is a key selection factor.

At the end of the lease period use of the asset can be returned to the lessor by the lessee unless it has been fully paid for (including interest) over the term of the lease. Which of the following it represent:

Which of the following provide the lessor retains the ownership of assets unless the lease expire when ownership transfer to lessee

Which of the following type of lease is referred here At the end of the lease the lessor simply takes back the leased property. Except for unusual damage (beyond normal wear and tear) to the property there are not usually any additional charges.

Which of the following type of lease is referred here At the end of the lease the lessee may be required to pay the difference between the leased property’s value and the amount for which it is sold by the lessor.

Which of the following can be a reason for a person to use credit to make a purchase?

With a mortgage, the borrower (mortgagor) gives the lender (mortgagee) a lien on property as security for the repayment of the mortgage.

A lien is the legal transfer of ownership of the property by the borrower to lender.

Often the cost of borrowing (the interest rate) —- if an asset is offered as security for the loan.

More interest paid earlier in the loan and more principal paid as the loan matures

Variable contracts can have a cap on how far the interest rates can increase, but sometimes there is no cap.

The person or business that owns the asset and leases it to another is called the —-. The person who leases or rents the asset is called the —.

The lease payment is based on the amortized cost of the initial price of the asset plus the residual value expected at the end of the lease.

Which of the following will be suitable for the client who expects that in future his housing needs may change significantly?

Which of the following should be selected by the client who plans to maintain the same house or car for extended period?

By making only the minimum required monthly credit card repayment the cardholder may get extended repayment period.