Select the correct answers.
Which two statements about financial service companies are true?
They offer loans only to consumers who have good credit ratings.
They partner with businesses to provide credit to consumers.
They are the largest type of financial institution in the United States.
They charge a higher interest on loans to consumers than banks do.
They specialize in providing residential and commercial property loans.
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When considering the statements about financial service companies, let's break down the options provided: 1. They offer loans only to consumers who have good credit ratings. - This statement is not entirely true. While financial service companies do consider credit ratings when providing loans, they may also offer loans to consumers with varying credit scores. So, this statement is not completely accurate. 2. They partner with businesses to provide credit to consumers. - This statement is true. Financial service companies often collaborate with businesses to offer credit options to consumers. This partnership helps in facilitating credit availability for consumers through different channels. 3. They are the largest type of financial institution in the United States. - This statement is not accurate. While financial service companies play a significant role in the financial sector, they are not necessarily the largest type of financial institution in the United States. Banks, investment firms, and insurance companies are also major players in the financial industry. 4. They charge a higher interest on loans to consumers than banks do. - This statement can vary depending on the specific financial service company and the bank in question. Interest rates on loans can differ based on various factors like the type of loan, creditworthiness of the borrower, and market conditions. Therefore, this statement may not always hold true universally. 5. They specialize in providing residential and commercial property loans. - This statement is partially true. Some financial service companies do specialize in offering residential and commercial property loans, but not all of them focus solely on this type of lending. Financial service companies typically provide a wide range of financial products and services beyond property loans. In conclusion, the correct statements about financial service companies are: - They partner with businesses to provide credit to consumers. - They may specialize in providing residential and commercial property loans, among other services.