6-33 What Is the Primary Function of Finance Companies

question 21

Multiple Choice

6-33 What is the primary function of finance companies?

• A)Protect individuals and corporations from adverse events.
• B)Make loans to both individuals and corporations.
• C)Extend loans to banks and other financial institutions.
• D)Pool the financial resources of individuals and companies and invest in diversified portfolios of assets.
• E)Assist in the trading of securities in the secondary markets.

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Definitions:

Horizontal Intercept

The point at which a curve hits the horizontal axis; it indicates the value of the x-variable when the value of the y-variable is zero.

Tacos

A traditional Mexican dish consisting of a corn or wheat tortilla folded or rolled around a filling such as beef, pork, chicken, seafood, beans, vegetables, and cheese.

Budget Line

The Budget Line is a graphical representation of all possible combinations of two goods that can be purchased with a given income level and prices.

Income Increases

Refers to a rise in the amount of money earned by individuals or households, which can influence their purchasing power and consumption patterns.