CA Real Estate Finance Course » 2021 » Sec 4 Unit 5 Exam

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Question #1
The Farm Credit System is ______.
A.   A government-sponsored enterprise
B.   Supported by federal funds
C.   A federal agency
D.   A federal bank
Question #2
Why does the federal government have agricultural lending programs?
A.   To be in direct competition with conventional lenders
B.   To ensure that credit is available to agricultural producers, who often can't meet conventional underwriting standards due to the nature of their work
C.   To meet the provisions of the Farm Loanership Act
D.   Because the Constitution requires the federal government to support agriculture in specific ways, such as agricultural lending
Question #3
The Farm Credit System funds are acquired from ______.
A.   The sale of debt securities and international money markets
B.   Mortgage-backed securities
C.   Private investors
D.   Local lenders
Question #4
Randall needs some new equipment for his ranching operation, and he needs a loan to purchase the equipment. When he approaches his local bank and applies for a Farm Credit System loan, how is the loan funded?
A.   From other local agriculture producers
B.   From federal tax revenue
C.   From the sale of Farm Credit System debt securities
D.   From deposits at the bank serving as lender
Question #5
Farmer Mac is an entity that ______ for agricultural property loans, rural utility loans, and certain loans guaranteed by the U. S. Department of Agriculture.
A.   Creates a secondary market
B.   Provides insurance
C.   Provides grants to lending institutions
D.   Reduces taxes
Question #6
Robert is a rancher. He was told about the USDA Farm Service Agency offerings. What can he use an approved loan for?
A.   Paying for his kids' college tuition
B.   Starting a construction side business
C.   Building a new hay barn
D.   Paying his ranch staff
Question #7
Which of these individuals may benefit from USDA Rural Development program offerings?
A.   Non-profit businesses
B.   Community-managed lenders
C.   Start-up business borrowers
D.   Low-income urban borrowers
Question #8
Which government program assists rural Americans by offering loans, grants, and loan guarantees for housing?
A.   Farm Credit Administration
B.   USDA Rural Development
C.   Farmer Mac
D.   Farm Credit System

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