Asked by Keyona Lyles on Jul 18, 2024
Verified
Which is the most accurate statement?
A) Fringe and sub-prime lending should be outlawed.
B) Poor people cannot get loans in the United States.
C) Household International can be considered a model corporate citizen.
D) When poor people get home mortgages or personal loans,they usually pay much higher interest rates than the average American.
Fringe Lending
Lending practices occurring outside of traditional banking institutions, often associated with high-interest rates and less favorable terms for borrowers.
Sub-Prime Lending
Lending to individuals who have poor credit histories and are considered a higher risk to lenders.
- Examine the elements that led to the savings and loan crisis during the 1980s.
Verified Answer
KL
Kylie LeitenbergerJul 19, 2024
Final Answer :
D
Explanation :
This is the most accurate statement as it is backed by data and statistical evidence. Studies have shown that low-income individuals and families are often charged higher interest rates for home mortgages and personal loans compared to their more affluent counterparts. This is partly due to their lack of credit history and perceived higher risk.
Learning Objectives
- Examine the elements that led to the savings and loan crisis during the 1980s.