Several Companies,some of Them Operating Through the Internet,offer "Paycheck Advances

question 125

Multiple Choice

Several companies,some of them operating through the Internet,offer "paycheck advances." Consumers are encouraged to take out a loan against a paycheck they expect to receive in the near future.These short-term loans with high-interest rates,and high penalties for late payments,are often marketed to consumers who do not have traditional bank accounts.These companies could most easily be criticized for which of the following?

• A) shoddy products
• B) poor service to disadvantaged consumers
• C) high-pressure selling
• D) high advertising and promotion costs
• E) excessive markups

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Definitions:

Shares

Equity stakes in a corporation, representing a portion of the ownership, which entitle the holder to a share of the company's profits and assets.

Capital Gains Yield

The rise in price of an investment or asset, represented as a percentage of the investment’s initial cost.

Dividends

Dividends are portions of a company's earnings decided by the board of directors to be distributed among shareholders, usually in the form of cash payments or shares.

Real Rate Of Return

The rate of return on an investment after adjusting for inflation, providing a clearer picture of the investment's true profitability.