Discussion 1.2
Why Are Financial Institutions Special? Financial Services: Depository Institutions
Discussion 2.1
Explain what is the primary function of finance companies? Provide an example.
Discussion 2.2
What is the function of institutional venture capital firms?
Case Study 2.1
- What is the primary function of finance companies? How do finance companies differ from depository institutions?
- What are the three major types of finance companies? To which market segments do each of these types of companies provide service?
- What have been the major changes in the accounts receivable balances of finance companies over the 38-year period from 1977 to 2015?
- What are the major types of consumer loans? Why are the rates charged by consumer finance companies typically higher than those charged by commercial banks?
- Why have home equity loans become popular? What are securitized mortgage assets?
- What advantages do finance companies have over commercial banks in offering services to small business customers? What are the major subcategories of business loans? Which category is the largest?
- What have been the primary sources of financing for finance companies?
