Consumer lending through installment loans falls under which financial company activity?
FINANCE COMPANY

Quiz
•
Financial Education
•
University
•
Hard
42.Trương Vy
Used 1+ times
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15 questions
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1.
MULTIPLE CHOICE QUESTION
10 sec • 5 pts
Capital mobilization.
Guarantee operations.
Lending operations.
Investment.
Answer explanation
Consumer lending through installment loans is classified as lending operations, as it involves providing funds to consumers that they repay over time, distinguishing it from capital mobilization, guarantee operations, or investment.
2.
MULTIPLE CHOICE QUESTION
10 sec • 5 pts
Financial companies can participate in which of the following activities?
Saving deposits.
Participating in the foreign exchange market.
Real estate business.
Issuing currency.
Answer explanation
Financial companies can participate in the foreign exchange market, which involves trading currencies. They do not typically handle saving deposits, engage in real estate business, or issue currency.
3.
MULTIPLE CHOICE QUESTION
10 sec • 5 pts
What is one benefit of borrowing from a financial company?
No collateral required.
Long approval process.
Complicated procedures
Lower interest rates than banks.
Answer explanation
One benefit of borrowing from a financial company is that no collateral is required, making it easier for borrowers to access funds without risking their assets.
4.
MULTIPLE CHOICE QUESTION
10 sec • 5 pts
Which of the following is a risk when borrowing from a financial company?
Simple procedures.
High-interest rates for customers with poor credit scores.
No need for collateral.
Fast disbursement.
Answer explanation
High-interest rates for customers with poor credit scores pose a significant risk when borrowing from a financial company, as they can lead to higher repayment amounts and financial strain.
5.
MULTIPLE CHOICE QUESTION
10 sec • 5 pts
Financial companies do not engage in which of the following activities?
Investing in the gold market.
Consumer lending.
Providing pawn services.
Issuing currency.
Answer explanation
Financial companies typically do not invest directly in the gold market, as their primary focus is on lending, currency issuance, and other financial services. Thus, the correct answer is investing in the gold market.
6.
MULTIPLE CHOICE QUESTION
10 sec • 5 pts
What is the main advantage of financial companies affiliated with credit institutions?
They operate completely independently, without being bound by the parent bank.
They can flexibly raise capital from various sources without control.
They are backed by large, reputable credit institutions with extensive networks.
They are not affected if the parent bank faces financial or reputational difficulties.
Answer explanation
The main advantage is that they are backed by large, reputable credit institutions, which provides credibility and access to extensive networks, enhancing their ability to operate effectively in the financial market.
7.
MULTIPLE CHOICE QUESTION
10 sec • 5 pts
What is the biggest challenge that 100% foreign-owned financial companies often face in Vietnam?
They cannot apply financial technology (Fintech) to their operations.
They must strictly comply with Vietnam's legal regulations, making expansion difficult.
They lack sufficient capital to compete with domestic financial companies.
They cannot reach young, modern customers with high consumption needs.
Answer explanation
The biggest challenge for 100% foreign-owned financial companies in Vietnam is the strict compliance with local legal regulations, which complicates their ability to expand and adapt to the market.
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