Banking Practice Exam 2025 - Free Banking Practice Questions and Study Guide

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What type of loans do industrial loan companies primarily engage in?

Consumer loans

Commercial loans

Industrial loan companies primarily engage in commercial loans, which is reflected in the correct choice. These institutions are designed to provide financing primarily to businesses and industries rather than individuals. Their primary focus is on loans that support business operations, working capital, equipment financing, and other business-related financial needs.

While consumer loans and residential mortgages are offered by various financial institutions, industrial loan companies typically do not concentrate on these areas. Their regulatory environment and business model are tailored towards meeting the needs of businesses rather than individual borrowers, thus distinguishing them from traditional banks that might offer a wider variety of personal finance products.

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Residential mortgages

All of the above

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