Which of the Following Is NOT True Regarding Finance Companies

question 30

Multiple Choice

Which of the following is NOT true regarding finance companies?

• A) they obtain the majority of their funds by selling short-term debt.
• B) their funds are used to make a variety of long term loans and leases.
• C) typically willing to make loans to companies with higher levels of default risk.
• D) none of the above.

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Definitions:

Safeguarded

refers to measures or actions taken to protect something from harm, loss, or unauthorized access.

Bank Service Charge

Fees charged by banks for account services provided, including monthly maintenance, transactions exceeding a certain limit, or ATM usage outside the network.

NSF Cheque

A cheque that cannot be processed because the account it is drawn on does not have sufficient funds, standing for "Non-Sufficient Funds."

Outstanding Cheques

Checks that have been written and recorded in the issuing company's ledger but have not yet been cashed or cleared by the bank.