SAMPLE EXAM QUESTIONS

The sample test questions below are representative of the type of questions you will find on the examination.

1.  In a Chapter 7 bankruptcy proceeding, the:

a.     Lender is repaid in full

b.     Loan is reclassified as an accruing asset

c.     Debtor in possession continues operating

d.     Estate is liquidated

2.  The most significant difference for a lender between a compilation and a re­viewed financial statement is the:

a.     Cost of preparation

b.     Accuracy of customer record keeping

c.     Depth of CPA involvement

d.     Number of supporting schedules

3.  One of your customers has had a successful business for the last thirty years. This customer asks your advice about selling his business. You should FIRST recommend that he:

a.     Review his life insurance coverage

b.     Consider liquidating his business

c.     Speak to his CPA about the tax consequences of a sale d. meet with a bank investment specialist

4.  A bank has agreed to package a SBA loan for a customer. The customer has agreed to pay you a fee. At what fee level must you provide the SBA with an itemized accounting of the package process?

a.     Any fee

b.     $500

c.     $1000

d.     $2000

5.  Which of the following should have the MOST influence with regard to

bank profitability when determining the pricing of a loan?

a.     Deposit relationship

b.     Repayment terms

c.     Collateral

d.     Underwriting standards

Answer Key:

1.       d

2.       c

3.       c

4.       c

5.       a