the economics of money, banking, and financial markets

343 #

© 2014 Pearson Canada Inc.#

5. 
   

   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

   
   


6. 
   

   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

   
   


7. 
   

   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

   
   


8. 
   

   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