If finance companies with a greater rate-sensitivity of liabilities than assets wanted to reduce interest-rate risk, they could
A) shorten their average asset life.
B) lengthen their average asset life.
C) shorten the maturity of debt that they issue.
D) make greater use of fixed-rate loans.
Correct Answer:
Verified
Q10: Which of the following is not a
Q11: Finance companies differ from commercial banks, savings
Q12: Finance companies are subject to
A)a maximum limit
Q14: When finance companies purchase a firm's receivables
Q15: Overall, the liquidity risk of finance companies
Q16: _ provide loans to firms that cannot
Q17: A wholly owned subsidiary whose primary purpose
Q17: Compared to other lending financial institutions, finance
Q17: _ finance companies concentrate on purchasing credit
Q19: Finance companies would prefer to increase their
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