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© 2014 Pearson Canada Inc.#
Non-deposit taking financial institutions that acquire funds by issuing commercial paper or
stock and bonds or borrowing from banks, and that use the proceeds to make loans are known as
____.
A) commodity companies
B) redistribution companies
C) barter companies
D) finance companies
Answer: D
Diff: 1 Type: MC Page Ref: 281
Skill: Recall
Objective List: 12.3 Identify key aspects of finance companies
Finance companies are ____.
A) as heavily regulated as banks
B) unregulated compared to banks
C) federally regulated
D) nationally regulated
Answer: B
Diff: 1 Type: MC Page Ref: 281
Skill: Recall
Objective List: 12.3 Identify key aspects of finance companies
Provincial regulation for finance companies does not cover any of the following except for
____.
A) the maximum amount they can loan to individual consumers
B) restrictions on branching
C) assets they hold
D) how they raise their funds
Answer: A
Diff: 3 Type: MC Page Ref: 281
Skill: Recall
Objective List: 12.3 Identify key aspects of finance companies
Sales finance companies compete directly with banks for ____.
A) business loans
B) credit lines
C) consumer loans
D) deposit accounts
Answer: C
Diff: 1 Type: MC Page Ref: 281
Skill: Recall
Objective List: 12.3 Identify key aspects of finance companies