6-39 a Company That Specializes in Making Loans to the Customers

question 30

Multiple Choice

6-39 A company that specializes in making loans to the customers of a particular retailer or manufacturer would best be categorized as a

• A)sales finance institution.
• B)personal credit institution.
• C)business credit institution.
• D)lease finance company.
• E)factoring company.

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Definitions:

Bank Statement

A monthly or quarterly document provided by a bank summarizing the transactions, including deposits and withdrawals, that occurred in a specific account.

Service Charge

A fee collected to pay for services related to the primary product or service being purchased.

Interest

The cost of borrowing money or the payment received for lending money, usually expressed as a percentage over a period of time.

Check Register

A record maintained by account holders to track checks written, deposits made, and the current balance of a checking account.