How are finance companies able to compete against commercial banks?

Group of answer choices

A lower degree of regulation allows finance companies to provide loans tailored to match the needs of borrowers more closely than do the standard loans that commercial banks provide.

Finance companies have a small advantage over commercial banks in monitoring the value of collateral, which gives them an advantage in consumer durables, inventories, and business equipment.

Finance companies and commercial banks serve different purposes; they do not compete against each other.

Only A and B are correct.

 

Answer rating: 100% (QA)

The best answer is A A lower degree of regulation allows finance companies to provide loans tailored ... View the full answer