Which of the Following Is NOT an Advantage of a Finance

question 25

Multiple Choice

Which of the following is NOT an advantage of a finance company over a commercial bank in providing services to small business customers?

• A)Finance companies are less willing to accept risky customers than are banks.
• B)Finance companies are not subject to regulations that restrict the type of products and services they can offer.
• C)Finance companies often have substantial industry and product expertise.
• D)Finance companies generally have lower overhead than banks.
• E)Finance companies do not accept deposits and therefore are not subject to bank-type regulatory restrictions.

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Definitions:

Currency

The monetary system commonly utilized within a specific nation.

Free Check-Cashing Services

Services provided without a fee to convert checks into cash.

Welfare Banks

Financial institutions typically focused on social welfare goals, offering inclusive financial services aimed at enhancing the living standards of the underprivileged.

Credit Card

A payment card issued by financial institutions that lets cardholders borrow funds with which to pay for goods and services.