CHAPTER 22. Finance companies and risk Which of the following actions would lessen the interest rate risk a finance company faces? A. Royal Crown no longer offers fixed-rate loans and has shortened the average life of its assets. B. Marshall Financial Inc. claims that they will approve loans for all borrowers regardless of credit history at a low interest rate. C. Wellspring Trust now receives all of its funds through borrowing rather than deposits. D. New Generation now offers fixed-rate loans with terms that are twice as long as they were before.

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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CHAPTER 22. Finance companies and risk

Which of the following actions would lessen the interest rate risk a finance company faces?

A. Royal Crown no longer offers fixed-rate loans and has shortened the average life of its assets.

B. Marshall Financial Inc. claims that they will approve loans for all borrowers regardless of credit history at a low interest rate.

C. Wellspring Trust now receives all of its funds through borrowing rather than deposits.

D. New Generation now offers fixed-rate loans with terms that are twice as long as they were before.

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