Consumer finance companies borrow in large amounts and lend in small amounts.

Name: Consumer finance companies borrow in large amounts and lend in small amounts.
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Consumer finance companies typically borrow money in large amounts from various sources at lower interest rates and then lend these funds in smaller amounts to consumers at higher interest rates, often for personal loans, home improvements, or small-scale loans. This model allows them to cover the risk of default and make a profit.

Consumer Finance Companies Borrow in Large Amounts and Lend in Small