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

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Question #1
The Farm Credit System is ______.
A.   A federal bank
B.   A federal agency
C.   A government-sponsored enterprise
D.   Supported by federal funds
Question #2
Why does the federal government have agricultural lending programs?
A.   To be in direct competition with conventional lenders
B.   Because the Constitution requires the federal government to support agriculture in specific ways, such as agricultural lending
C.   To meet the provisions of the Farm Loanership Act
D.   To ensure that credit is available to agricultural producers, who often can't meet conventional underwriting standards due to the nature of their work
Question #3
The Farm Credit System funds are acquired from ______.
A.   The sale of debt securities and international money markets
B.   Private investors
C.   Local lenders
D.   Mortgage-backed securities
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 federal tax revenue
B.   From deposits at the bank serving as lender
C.   From other local agriculture producers
D.   From the sale of Farm Credit System debt securities
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 grants to lending institutions
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.   Paying his ranch staff
B.   Starting a construction side business
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.   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.   Farmer Mac
B.   USDA Rural Development
C.   Farm Credit Administration
D.   Farm Credit System

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