What services are finance companies able to offer consumers and businesses that banks do not offer?
What will be an ideal response?
The loans made by finance companies are similar to the consumer and commercial loans made by banks. However, because finance companies do not accept deposits, they are much more lightly regulated than banks. This allows finance companies to offer loans tailored to match the particular needs of borrowers more closely than do the standard loans offered by banks.
You might also like to view...
In 1971 money market mutual funds were introduced as an alternative to
A) commercial paper. B) Treasury bills. C) repurchase agreements. D) bank deposits.
Productivity growth occurs when:
A) there are more inputs B) firms can produce more output per unit of input C) more output is produced D) employees work extra hours
The dollar amount of a future payment is ________ its present value.
a. exactly the same as b. approximately the same as c. less than d. greater than
Which of the following are accurate findings of recent studies about the effectiveness of intervention activities?
A. Smaller interventions are usually more successful than larger interventions. B. Intervention is often effective for two weeks or less in reversing the direction of the trend of the exchange rate or reducing the speed of the trend. C. The effectiveness of the intervention usually can be observed in the trend for months to come. D. Interventions are usually more effective when exercised by an individual monetary authority rather than by the authorities of two or more countries intervening jointly.