Which of the following statements is true?

	a.	Finance company loss reserves have a lower percent of assets than a bank's loss reserves.
	b.	Compared to banks, the finance company loan portfolios have a lower percentage of mortgages, are longer term, and have higher credit risk.
	c.	Deposit is a source of fund for finance companies.
	d.	Finance company services include consumer, business, and mortgage lending.

Which of the following statements is false?

	a.	Factoring is purchasing corporate accounts receivables at a discount.
	b.	A finance company that makes loans to high risk customers is called a subprime leader.
	c.	Sales finance companies specialize in making loans to customers of a specific retailer or manufacturer.
	d.	Captive finance companies specialize in lending only to high risk individuals that cannot obtain loans elsewhere.

Which of the following statements is true?

	a.	An interest rate floor is designed to protect an institution from falling interest rates.
	b.	A bank with short term floating rate assets funded by long term fixed rate liabilities could hedge this risk by entering into a swap agreement to pay a fixed rate and receive a variable rate.
	c.	A bank with long term fixed rate assets funded with short-term rate sensitive liabilities could sell an interest rate swap to limit their interest rate risk.
	d.	An interest rate collar is buying a floor and writing a cap simultaneously.