FIMA 30063 - Credit and Collection: Weeks 10-12 Quiz

In structuring the terms and conditions of a credit transaction, the following should be considered: ▪ Fund matching principle must be ______.

Loan Documentation and Disbursement involves the process of loan ______

Loan Packaging includes Loan ______

The importance of documentation in credit transactions is to ______

Short-term facilities shall be proposed for short-term credit requirements while term facility shall be considered for medium or long-term ______

Credit support and control systems are necessary to manage outstanding ______

Common sense and good judgment is a must in structuring a credit ______. Credit decision cannot be based entirely on a static set of credit guidelines or analytical technique. A proactive stance is thus a must.

The structure of a credit ______, including the terms and conditions should be clearly stated.

Every proposal shall have the following documents/reports: − Credit Proposal Executive Summary (contains the highlights of the proposal such as: information on the ______, the project description, the type, amount, major terms and conditions, recommendation and justification)

Ensure that every credit extension is supported by the required approvals that shall be properly ______

In loan negotiation, the tenor refers to the interest rate of the loan.

The fund matching principle must be observed in structuring the terms and conditions of a credit transaction.

Short-term facilities are proposed for medium or long-term credit requirements.

The importance of documentation in credit transactions is to minimize the need for account monitoring and review.

Credit decision can be entirely based on a static set of credit guidelines or analytical technique, without requiring proactive judgment.

Is it necessary for credit terms and conditions to be flexible and responsive to the specific situation of the client?

Should credit decisions be based entirely on a static set of credit guidelines or analytical technique?

Is it important for the structure of a credit package, including the terms and conditions, to be clearly stated?

Should all deviations from the standard terms and conditions be highlighted and justified in a credit proposal?

Is it necessary to ensure that every credit extension is supported by the required approvals that are properly documented?