Question 1

Which of the following is NOT  a use of finance company funds?

Accepted Answer

A) consumer loans 
B) business loans 
C) commercial paper 
D) real estate loans 
E) All of the above are uses of finance company funds. 
A) consumer loans 
B) business loans 
C) commercial paper 
D) real estate loans 
E) All of the above are uses of finance company funds.

Question 2

Finance companies are exempt from state regulations.

Accepted Answer

A) True 
 B)False

Question 3

____ finance companies provide financing for customers of retail stores and provide personal loans to individuals.

Accepted Answer

A) Consumer 
B) Sales 
C) Commercial 
D) None of these are correct. 
A) Consumer 
B) Sales 
C) Commercial 
D) None of these are correct.

Question 4

The main competition for finance companies in the consumer loan market comes from pension funds and insurance companies.

Accepted Answer

A) True 
 B)False

Question 5

Finance companies commonly act as ____ for accounts receivable; that is, they purchase a firm's receivables at a discount and are responsible for processing and collecting the balances of these accounts.

Accepted Answer

A) brokers 
B) dealers 
C) market makers 
D) factors 
E) None of these are correct. 
A) brokers 
B) dealers 
C) market makers 
D) factors 
E) None of these are correct.

Question 6

When a finance company purchases a firm's receivables at a discount and becomes responsible for processing and collecting the balances of these accounts, it acts as a

Accepted Answer

A) leasing agent. 
B) lessor. 
C) lessee. 
D) factor. 
A) leasing agent. 
B) lessor. 
C) lessee. 
D) factor.

Question 7

Finance companies are regulated by the states and are not subject to regulation by any agency of the federal government.

Accepted Answer

A) True 
 B)False

Question 8

Although commercial paper is available only for short-term financing, finance companies can continually roll over their issues to create a permanent source of funds.

Accepted Answer

A) True 
 B)False

Question 9

A finance company's cash flows are _____ related to changes in economic growth and may be ____ related to changes in the risk-free rate.

Accepted Answer

A) positively; inversely 
B) inversely; positively 
C) inversely; inversely 
D) positively; positively 
A) positively; inversely 
B) inversely; positively 
C) inversely; inversely 
D) positively; positively

Which of the following is NOT a use of finance company funds?

Finance companies are exempt from state regulations.

____ finance companies provide financing for customers of retail stores and provide personal loans to individuals.

The main competition for finance companies in the consumer loan market comes from pension funds and insurance companies.

Finance companies commonly act as ____ for accounts receivable; that is, they purchase a firm's receivables at a discount and are responsible for processing and collecting the balances of these accounts.

When a finance company purchases a firm's receivables at a discount and becomes responsible for processing and collecting the balances of these accounts, it acts as a

Finance companies are regulated by the states and are not subject to regulation by any agency of the federal government.

Although commercial paper is available only for short-term financing, finance companies can continually roll over their issues to create a permanent source of funds.

A finance company's cash flows are _ related to changes in economic growth and may be related to changes in the risk-free rate.

Role of Financial Markets and Institutions

Determination of Interest Rates

Structure of Interest Rates

Functions of the Fed

Monetary Policy

Money Markets

Bond Markets

Bond Valuation and Risk

Mortgage Markets

Stock Offerings and Investor Monitoring

Stock Valuation and Risk

Market Microstructure and Strategies

Financial Futures Markets

Options Markets

Swap Markets

Foreign Exchange Derivative Markets

Commercial Bank Operations

Bank Regulation

Bank Management

Bank Performance

Thrift Operations

Mutual Fund Operations

Securities Operations

Insurance and Pension Fund Operations

Pension Fund Operations

Filters

Exam 22: Finance Company Operations

Which of the following is NOT a use of finance company funds?

Finance companies are exempt from state regulations.

____ finance companies provide financing for customers of retail stores and provide personal loans to individuals.

The main competition for finance companies in the consumer loan market comes from pension funds and insurance companies.

Finance companies commonly act as ____ for accounts receivable; that is, they purchase a firm's receivables at a discount and are responsible for processing and collecting the balances of these accounts.

When a finance company purchases a firm's receivables at a discount and becomes responsible for processing and collecting the balances of these accounts, it acts as a

Finance companies are regulated by the states and are not subject to regulation by any agency of the federal government.

Although commercial paper is available only for short-term financing, finance companies can continually roll over their issues to create a permanent source of funds.

A finance company's cash flows are _____ related to changes in economic growth and may be ____ related to changes in the risk-free rate.

Role of Financial Markets and Institutions

Determination of Interest Rates

Structure of Interest Rates

Functions of the Fed

Monetary Policy

Money Markets

Bond Markets

Bond Valuation and Risk

Mortgage Markets

Stock Offerings and Investor Monitoring

Stock Valuation and Risk

Market Microstructure and Strategies

Financial Futures Markets

Options Markets

Swap Markets

Foreign Exchange Derivative Markets

Commercial Bank Operations

Bank Regulation

Bank Management

Bank Performance

Thrift Operations

Mutual Fund Operations

Securities Operations

Insurance and Pension Fund Operations

Pension Fund Operations

Filters

A finance company's cash flows are _ related to changes in economic growth and may be related to changes in the risk-free rate.