FIN 370 CH 3 Exam Questions and
Answers Graded A+
Primary function of finance companies - Correct answer-Make loans to both
individuals and corporations
Services provided by finance companies - Correct answer-Consumer lending
Business lending
Mortgage financing
Differences between finance companies and banks - Correct answer-Finance
companies do not accept deposits
Finance companies often lend to more risk customers
Growth of finance companies in the last 35 years - Correct answer-Over 1566%
Sales finance institutions - Correct answer-Specialize in making loans to customers
of a particular retailer or manufacturer
Personal credit institutions - Correct answer-Specialize in making installment and
other loans to consumers
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, Business credit institutions - Correct answer-Provide financing to corporations
Largest _____ firms account for more than ____% of its assets - Correct answer-20
65%
_____________________________ (called A/R) are the major assets held by
finance company totaling ____% of total assets - Correct answer-Business and
consumer loans
58%
Fastest growing areas of asset business - Correct answer-Leasing and business
lending
Consumer loans are made up of - Correct answer-Motor vehicle loans and leases
Other consumer loans
Securitized loans from each category
____________________ are traditionally the major type of consumer loan (53.1%)
- Correct answer-Motor vehicle loans and leases
Finance companies generally charge ______________ rates for automobile loans
than commercial banks - Correct answer-Higher
Payday lenders have boomed from 2000 to 2012 to - Correct answer-24000
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
Answers Graded A+
Primary function of finance companies - Correct answer-Make loans to both
individuals and corporations
Services provided by finance companies - Correct answer-Consumer lending
Business lending
Mortgage financing
Differences between finance companies and banks - Correct answer-Finance
companies do not accept deposits
Finance companies often lend to more risk customers
Growth of finance companies in the last 35 years - Correct answer-Over 1566%
Sales finance institutions - Correct answer-Specialize in making loans to customers
of a particular retailer or manufacturer
Personal credit institutions - Correct answer-Specialize in making installment and
other loans to consumers
©COPYRIGHT 2025, ALL RIGHTS RESERVED 1
, Business credit institutions - Correct answer-Provide financing to corporations
Largest _____ firms account for more than ____% of its assets - Correct answer-20
65%
_____________________________ (called A/R) are the major assets held by
finance company totaling ____% of total assets - Correct answer-Business and
consumer loans
58%
Fastest growing areas of asset business - Correct answer-Leasing and business
lending
Consumer loans are made up of - Correct answer-Motor vehicle loans and leases
Other consumer loans
Securitized loans from each category
____________________ are traditionally the major type of consumer loan (53.1%)
- Correct answer-Motor vehicle loans and leases
Finance companies generally charge ______________ rates for automobile loans
than commercial banks - Correct answer-Higher
Payday lenders have boomed from 2000 to 2012 to - Correct answer-24000
©COPYRIGHT 2025, ALL RIGHTS RESERVED 2
