6-34 Finance companies have enjoyed very high rates of growth because they
A) are willing to lend to riskier customers than commercial banks.
B) charge higher rates on lower risk loans.
C) do not have ties or affiliations with manufacturing firms.
D) face very high levels of regulation,which assures their success.
E) do not sell the loans that they originate.
Correct Answer:
Verified
Q16: 6-4 Personal credit institutions specialize in making
Q17: 6-8 Sales finance institutions compete directly with
Q18: 6-10 The parent institution provides all of
Q19: 6-16 When a finance company pools mortgages
Q20: 6-9 Finance companies generally charge lower interest
Q22: 6-39 A company that specializes in making
Q23: 6-30 Finance companies have traditionally been subject
Q24: 6-24 Finance companies have relied primarily on
Q25: 6-23 Finance companies prefer to lease equipment
Q26: 6-27 As the economic expansion continued through
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