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Homework answers / question archive / Finance companies: a) Are money market intermediaries b) Borrow in large amounts, but lend in small amounts c) Are virtually unregulated d) All of the above

Finance companies: a) Are money market intermediaries b) Borrow in large amounts, but lend in small amounts c) Are virtually unregulated d) All of the above

Finance

Finance companies:

a) Are money market intermediaries

b) Borrow in large amounts, but lend in small amounts

c) Are virtually unregulated

d) All of the above

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The correct answer is option d) All of the above. Finance companies are known as market intermediaries due to one of its main functions which means to allow small and individual participants to access the money market. This intermediary function is related to the fact that they borrow large amounts, but lend in small amounts and unlike commercial banks, finance companies are virtually unregulated since they have no restrictions on assets holding and the way funds were raised.