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

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Question #1
The Farm Credit System is ______.
A.   Supported by federal funds
B.   A federal bank
C.   A federal agency
D.   A government-sponsored enterprise
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.   Local lenders
B.   The sale of debt securities and international money markets
C.   Mortgage-backed securities
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 the sale of Farm Credit System debt securities
B.   From deposits at the bank serving as lender
C.   From other local agriculture producers
D.   From federal tax revenue
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 insurance
B.   Creates a secondary market
C.   Reduces taxes
D.   Provides grants to lending institutions
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.   Starting a construction side business
B.   Paying his ranch staff
C.   Building a new hay barn
D.   Paying for his kids' college tuition
Question #7
Which of these individuals may benefit from USDA Rural Development program offerings?
A.   Non-profit businesses
B.   Low-income urban borrowers
C.   Start-up business borrowers
D.   Community-managed lenders
Question #8
Which government program assists rural Americans by offering loans, grants, and loan guarantees for housing?
A.   Farm Credit Administration
B.   Farmer Mac
C.   USDA Rural Development
D.   Farm Credit System

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