Explain how finance companies differ from the other private financial institutions discussed in this lesson.

Explanation:

A finance company is an organization that makes loan available to individuals and businesses. Unlike a bank, a finance company does not receive cash deposits from clients, nor does it provide some other services common to banks, such as checking accounts. Finance companies makes profit from interest rates charged on their loans, which are normally higher than the interest rates that banks charge their clients.

financial institution is a company engaged in the business of dealing with financial and monetary transactions such as deposits, loans, investments, and currency exchange. Financial institutions encompass a broad range of business operations within the financial services sector including banks, trust companies, insurance companies, brokerage firms, and investment dealers.

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