30 terms

FFA Banking Terms 2

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Federal Lank Bank loans are secured by a first lien on crops
False
All livestock are considered intermediate assets
False
A Balance Sheet is a listing of your income and expenses for the year
False
A current assets normally can be converted to cash within a year
True
In Ag. Finance, competition tends to lower the cost you pay for borrowing capital
True
Operating loans are usually made with maturities coinciding with the purpose of the loan and the normal marketing season for the enterprise being financed
True
Cash flow is not important to farmers because they only have harvest one crop a year
False
Endorsing your check means signing your name on the back of the check
True
Current economic conditions seldom affect farmers
False
A Farm Credit association's board is appointed by the government
False
Banks, Farm Credit, and Insurance companies all make farm loans
True
Mortgage loans, equipment loans and crop loans are all short-term loans
False
Managers of farm properties have no influence on their profitability because they are only price takers
False
Accrued interest is the interest that has been earned but is not yet paid or due
True
A cash flow budget shows whether or not a farm is profitable
True
Farm Credit Leasing Services is a leasing entity that acquires buildings and office equipment for use by Farm Credit Associations. Buildings and offices equipment are leased by Farm Credit Associations to preserve capital
False
FLCA'S are the only Farm Credit Associations to provide long-term loans
False
By 1968 all federal capital was repaid and the Farm Credit System was owned completely by its borrowers
True
Fresno Madera Farm Credit offers 4-H and FFA student project loans for animals and projects to be shown at the fair
True
Jeff Jue is Chairman of the Board of Fresno Madera Farm Credit
True
The total returns from operating a business before allowance is made for any costs related to the operation
Gross income
To provide for the payment of a debt by scheduled installments of principal and interest over a specified period of time
Amortize
A statement of a customer's income and expenses for a specific period
Profit and loss statement
An individual or entity's ability to repay a loan
Capacity
A listing of all assets and liabilities of an individual or an entity, showing it's net worth on a given date
Financial statement
The Farm Credit system started in
1916
Current Assets consist of
Cash, inventory, and receivables
A legal document that conveys title to property from the former owner to the new owner
Deed
Which is part of the Farm Credit System
Banks of Cooperatives, Federal Land Bank
Farm Credit Institutions raise money by
Selling bonds on Wall Street
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