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Homework answers / question archive / Identify which source of funds is consistent with each of the scenarios described in the following table
Identify which source of funds is consistent with each of the scenarios described in the following table. Loans from Banks Commercial Paper Deposits Bonds Capital O Agnate Financial creates a source of funds by retaining earnings. O O O 0 New Heights Financial Services uses this source of funds to obtain long-term funds, particularly if it feels that interest rates will rise over time. Although this is not a major source of funds, some states allow finance companies to attract funds in this way. O This source of funds can be consistently renewed over time, providing finance companies with a continual source of funds. O o O Although in recent years more finance companies are using this source of funds, traditionally very few finance companies use this source to attract funds because it exposes investors to the risk of default.
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