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FINANCE COMPANY

Total questions: 15

Worksheet time: 3mins

Name
Class
Date
1.

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

a)

Capital mobilization.

b)

Guarantee operations.

c)

Lending operations.

d)

Investment.

2.

Financial companies can participate in which of the following activities?

a)

Saving deposits.

b)

Participating in the foreign exchange market.

c)

Real estate business.

d)

Issuing currency.

3.

What is one benefit of borrowing from a financial company?

a)

No collateral required.

b)

Long approval process.

c)

Complicated procedures

d)

Lower interest rates than banks.

4.

Which of the following is a risk when borrowing from a financial company?

a)

Simple procedures.

b)

High-interest rates for customers with poor credit scores.

c)

No need for collateral.

d)

Fast disbursement.

5.

Financial companies do not engage in which of the following activities?

a)

Investing in the gold market.

b)

Consumer lending.

c)

Providing pawn services.

d)

Issuing currency.

6.

What is the main advantage of financial companies affiliated with credit institutions?

a)

They operate completely independently, without being bound by the parent bank.

b)

They can flexibly raise capital from various sources without control.

c)

They are backed by large, reputable credit institutions with extensive networks.

d)

They are not affected if the parent bank faces financial or reputational difficulties.

7.

What is the biggest challenge that 100% foreign-owned financial companies often face in Vietnam?

a)

They cannot apply financial technology (Fintech) to their operations.

b)

They must strictly comply with Vietnam's legal regulations, making expansion difficult.

c)

They lack sufficient capital to compete with domestic financial companies.

d)

They cannot reach young, modern customers with high consumption needs.

8.

What is the main limitation of state-owned financial companies compared to other types?

a)

They do not have stable capital sources to implement large projects.

b)

They lack motivation for innovation and creativity due to the absence of market pressure.

c)

They cannot access government support policies.

d)

They do not have an advantage in long-term economic development projects.

9.

Why do joint-stock financial companies have strong long-term growth potential?

a)

They operate under direct government sponsorship.

b)

They have flexible capital mobilization and adaptability to market trends.

c)

They are not subject to competition from other types of financial companies.

d)

They are unaffected by stock market fluctuations.

10.

What is the biggest risk that joint-venture financial companies may face?

a)

Conflicts between partners over business strategy and control.

b)

Inability to access capital from both domestic and foreign sources.

c)

Inability to expand into international markets despite foreign partner support.

d)

Prohibition from applying financial technology to their operations.

11.

According to the Law on Credit Institutions 2010, what type of credit institution is a finance company?

a)

Banking credit institution

b)

Non-banking credit institution

c)

Cooperative credit institution

d)

State credit institution

12.

Which of the following activities is a finance company NOT allowed to perform?

a)

Consumer lending

b)

Credit card issuance

c)

Accepting individual deposits

d)

Bank guarantee

13.

What is the current legal capital requirement for a finance company?

a)

100 billion VND

b)

300 billion VND

c)

500 billion VND

d)

1000 billion VND

14.

What is the primary role of a finance company in the economy?

a)

Providing payment services for businesses

b)

Mobilizing capital and providing capital for businesses and consumers

c)

Issuing currency

d)

Managing national foreign exchange reserves

15.

Compared to commercial banks, what is a distinctive characteristic of finance companies regarding capital mobilization?

a)

Mobilizing capital from individual demand deposits

b)

Primarily mobilizing capital from internal groups and affiliated companies

c)

Issuing shares on the stock market

d)

Borrowing directly from the Central Bank with preferential interest rates