Case study and 3 discussion

Discussion 1.2

Why Are Financial Institutions Special? Financial Services: Depository Institutions

Discussion 2.1

Explain what is the primary function of finance companies? Provide an example.

Discussion 2.2

What is the function of institutional venture capital firms?

Case Study 2.1

  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 have been the major changes in the accounts receivable balances of finance companies over the 38-year period from 1977 to 2015?
  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?  
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