1. Independent finance companies are generally more exposed to which of the following risk factors when compared to "captive" finance companies: A) Interest rate risk, B) Currency exchange rate risk, C) Credit risk, D) Liquidity/Refinancing Risk, E) None of these risks. 2. Which is not a difference between finance companies and depositories A) Finance companies lack access to the Federal Reserve Discount Window, B) Finance companies are not allowed to issue federally insured deposits, C) Finance Companies extend credit as their core business activity, D) Finance Companies typically assume credit risks which are higher than those assumed by depository institutions Gap Analysis is most useful for analyzing A) Market Risk, B) Credit Risk, C) the Income Effect of Interest Rate Risk, D) the Equity Effect of Interest Rate Risk. 3. 4. Which is the most heavily leveraged type of company among the following? A) Investment Bank, B) Life Insurance Company, C) Independent Finance Company, D) Commercial Bank, E) None of the above. 5. The riskiest activities in a securities firm or investment bank is A ) Advisory services, B) Proprietary trading, C) Securities brokerage, D) Securities underwriting