Financing Companies (M5 T8 FIN 2101-3)

Financing companies may not extend credit to businesses, both small and large.

• TRUE

• FALSE

Financing companies are corporations, identical to banks, investment houses, savings and loan associations, insurance companies, cooperatives, and other financial institutions

• TRUE

• FALSE

Through a finance company, borrowers with poor credit will usually have access to funds otherwise unavailable through traditional bank lenders or unsecured credit cards.

• FALSE

• TRUE

One of the functions of Financing Companies is to Lend to Purchase Product

• TRUE

• FALSE

Financing companies shall be organized in the form of a non-stock corporation

• FALSE

• TRUE

One of the rights and power of Financing Companies is to engage in trust operations not subject to the provisions of the General Banking Act and without prior approval by the BSP

• TRUE

• FALSE

BSP has the right and power to provide foreign currency loans and leases to enterprises that earn foreign currency by exports or other means subject to existing laws, rules and regulations promulgated by the BSP

• TRUE

• FALSE

The periodic payments made by the lessee to the lessor.

The excess of assets over liabilities.

Any stock corporation may be registered as a financing company by filing with the Commission five (5) copies of an application to operate as a financing company under Republic Act no. ____