The financial intermediaries that make loans available and accept long term and short term debts for funding are considered as __________?
Correct answer: D. finance companies
- A. activity institutions
- B. investment companies
- C. mortgage companies
- D. finance companies
Explanation
Finance companies specialize in providing loans and commonly raise funds by issuing short-term and long-term debt. Unlike commercial banks, they generally do not rely primarily on customer deposits.
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About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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