ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -CONSUMER finance companies engage primarily in making personal. loans to consumers and are identified and defined by their operations. under state small-loan laws. Although these laws differ in detail from. state to state, they are similar in content and scope.

Detailed explanation-2: -loan. a network of savers, investors, and financial institutions that work together to transfer savings to investors. accounts, certificates of deposits, and government and corporate bonds.

Detailed explanation-3: -Banks as Financial Intermediaries Banks act as financial intermediaries because they stand between savers and borrowers. Savers place deposits with banks, and then receive interest payments and withdraw money. Borrowers receive loans from banks and repay the loans with interest.

Detailed explanation-4: -finance company, specialized financial institution that supplies credit for the purchase of consumer goods and services by purchasing the time-sales contracts of merchants or by granting small loans directly to consumers.