1. What is the primary function of finance companies? How do finance companies differ from depository institutions?

2. What are the three major types of finance companies? To which market segments do each of these types of companies provide service?

3. What are the three major types of finance companies? To which market segments do each of these types of companies provide service?

4. 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?

5. Why have home equity loans become popular? What are securitized mortgage assets?

6. 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?

7. What have been the primary sources of financing for finance companies?