Answer:
B) virtually unregulated.
Explanation:Finance companies are companies whose sole responsibility is to make loans for individuals or corporate entity. They do not receive cash deposits or other responsibilities as the banks do.
Commercial banks are financial institutions who are in the business or collecting deposits,issuing loans with the a of making profits. Commercial banks are heavily regulated by the Central bank in most countries.
Thrift institutions also known as savings and loans company are financial institutions whose sole responsibility is to receive deposits and give out loans, they are also highly regulated by Government agencies.
Answer:
The correct answer is letter "D": virtually unregulated.
Explanation:
Commercial banks are typically regulated a the central bank or the Federal Reserve (Fed) in the case of the U.S. Central banks make sure the reserves commercial banks possess are at least the minimum according to their capital requirements.
Instead, finance companies are licensed and rules by the state where they handle business but not for a central body enforcing rules for all those institutions under the same criteria. Because of that reason, finance companies are considered to be virtually unregulated.
