the economics of money, banking, and financial markets

342 #

© 2014 Pearson Canada Inc.#

12.3 Finance Companies

1. 
   

   The three types of finance companies are ____.
   A) sales, investment, and business
   B) credit, consumer, and business
   C) sales, consumer, and business
   D) credit, consumer, and bank
   Answer: C
   Diff: 1 Type: MC Page Ref: 281
   Skill: Recall
   Objective List: 12.3 Identify key aspects of finance companies

   
   


2. 
   

   The financial intermediation process of ____ can be described by saying that they borrow
   in large amounts but often lend in small amounts.
   A) pension funds
   B) investment banks
   C) finance companies
   D) credit unions
   Answer: C
   Diff: 1 Type: MC Page Ref: 281
   Skill: Recall
   Objective List: 12.3 Identify key aspects of finance companies

   
   


3. 
   

   Which of the following financial intermediaries is not a depository institution?
   A) A savings and loan association
   B) A commercial bank
   C) A credit union
   D) A finance company
   Answer: D
   Diff: 1 Type: MC Page Ref: 281
   Skill: Recall
   Objective List: 12.3 Identify key aspects of finance companies

   
   


4. 
   

   An investment intermediary that lends funds to consumers is ____.
   A) a finance company
   B) an investment bank
   C) a finance fund
   D) a consumer company
   Answer: A
   Diff: 1 Type: MC Page Ref: 281
   Skill: Applied
   Objective List: 12.3 Identify key aspects of finance companies