The primary source of funds for finance companies is ________.

Question

Quizplus · Accepted Answer

The primary source of funds for finance companies is through issuing commercial paper, which are short-term debt securities that are sold to investors. Finance companies use the funds generated from the sale of commercial paper to provide loans and financing to their customers. Deposits are typically associated with banks and credit unions, while securities may be used as a source of investment income for finance companies but are not their primary source of funds. The central bank may provide liquidity to finance companies during times of economic crisis, but it is not a primary source of funds for these companies.

The Primary Source of Funds for Finance Companies Is ________