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1 FINANCE MCQS

The financial intermediaries that provide loans and accept short-term and long-term debts for funding are called:

  • Activity institutions
  • Investment companies
  • Mortgage companies
  • Finance companies
Correct Answer: D. Finance companies

Detailed Explanation

Finance companies are non-bank financial institutions that provide loans to individuals and businesses without accepting deposits like traditional banks. They fund these loans by issuing short-term and long-term debt instruments. Their primary function is to offer consumer credit, personal loans, and business financing solutions.

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