The Accounting Review Vol. 34 No. 4 1959
MONETARY POLICY AND SALES FINANCE AND SMALL LOAN COMPANIES' FUNDS, 1949-1954.
Abstract
The article attempts to determine how a restrictive monetary policy affected the amounts, source, and cost of funds of sales finance and small loan companies. It is limited to the period between December 31, 1948 and June 30, 1934, which includes a period before and after the restrictive monetary situation from March 1951 to June 1933. Questionnaires were sent to one hundred companies to determine quantitatively and qualitatively what effect monetary policy had on their funds. Companies were segregated into sales finance and small loan groups, and then further broken down into size groups. As analysis of each division was made, qualitative and quantitative data were integrated to determine if variations were reactions to changing monetary policy. There was no discernible limitation in the total amount of funds used by these companies as an entity, but some companies were unable to get all the funds they wanted at rates they were willing to pay. This limitation was more than offset by the fact that larger companies could obtain additional funds at all times. The only possible limitation was of an indirect nature, caused by changes in terms of credit to the consumer, which were made under the influence of monetary policy.
- DOI
- 10.2308/tar-7059032
- Volume
- 34
- Issue
- 4
- Pages
- 614-615
- Language
- en
- Sources
- openalex crossref