Part $1$

Which statements are true about the competitive dynamics among different

financial institutions?

Check all that apply:

Credit unions have historically competed with finance companies in high$-$risk

markets.

Finance companies often target prime loan customers that typically go to

depository institutions.

Finance companies do not compete in the prime loan market.

Savings institutions have shifted focus from mortgage lending to primarily

securities investment.

All financial institutions have begun to offer similar types of loans due to

competitive pressures.