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

Need help with your exam preparation?

Existing Quiz Clients Login here
Question #1
The Farm Credit System is ______.
A.   A federal agency
B.   A government-sponsored enterprise
C.   Supported by federal funds
D.   A federal bank
Question #2
Why does the federal government have agricultural lending programs?
A.   Because the Constitution requires the federal government to support agriculture in specific ways, such as agricultural lending
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 be in direct competition with conventional lenders
D.   To meet the provisions of the Farm Loanership Act
Question #3
The Farm Credit System funds are acquired from ______.
A.   Mortgage-backed securities
B.   Local lenders
C.   The sale of debt securities and international money markets
D.   Private investors
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 the sale of Farm Credit System debt securities
C.   From federal tax revenue
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.   Provides grants to lending institutions
B.   Creates a secondary market
C.   Provides insurance
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.   Building a new hay barn
B.   Paying his ranch staff
C.   Paying for his kids' college tuition
D.   Starting a construction side business
Question #7
Which of these individuals may benefit from USDA Rural Development program offerings?
A.   Community-managed lenders
B.   Low-income urban borrowers
C.   Non-profit businesses
D.   Start-up business borrowers
Question #8
Which government program assists rural Americans by offering loans, grants, and loan guarantees for housing?
A.   USDA Rural Development
B.   Farmer Mac
C.   Farm Credit System
D.   Farm Credit Administration

Need help with your exam preparation?

Existing Quiz Clients Login here