Practice Test Geeks(NAB) National Australia Bank Practice Test
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Lending and Credit Flashcards

7 cards from real NAB practice questions. Tap to flip, then mark Knew It or Still Learning — missed cards come back until you master them.

Read the first 7 Lending and Credit flashcards as text

  1. What is typically used as collateral for a NAB secured personal loan?

    Answer: A vehicle or other tangible personal asset

    Secured personal loans commonly use a tangible asset such as a car as collateral, reducing lender risk and typically lowering the interest rate.

  2. Which NAB business lending product is best suited for managing short-term everyday cash flow shortfalls?

    Answer: Business overdraft

    A business overdraft provides flexible access to funds beyond the account balance, allowing businesses to manage temporary cash flow gaps.

  3. What does a NAB credit card balance transfer allow a customer to do?

    Answer: Move existing credit card debt from another lender onto their NAB card

    A balance transfer lets customers consolidate credit card debt from other institutions onto a NAB card, often at a promotional lower interest rate.

  4. When assessing a business loan application, which financial documents does NAB primarily review to evaluate viability?

    Answer: Business activity statements and profit and loss statements

    NAB reviews BAS and profit & loss statements to understand actual business revenue, expenses, and profitability before making a lending decision.

  5. For NAB personal loans, which factor most significantly influences the interest rate offered to a customer?

    Answer: The borrower's credit history and overall risk profile

    A borrower's credit history and risk profile are the primary determinants of the personal loan rate, as lenders price for perceived risk.

  6. What is the primary purpose of a NAB business line of credit?

    Answer: To provide businesses with revolving, flexible access to funds for ongoing operational expenses

    A business line of credit is a revolving facility giving businesses flexible access to pre-approved funds that can be drawn and repaid repeatedly as needed.

  7. In the context of NAB home lending, what does a borrower's 'equity' represent?

    Answer: The difference between the property's current value and the outstanding loan balance

    Home equity is the portion of the property the borrower effectively owns, calculated as the current property value minus the remaining loan balance.