Which Payday Loan Lender Is Likely to Ask You to Write

question 45

Multiple Choice

Which payday loan lender is likely to ask you to write a check for $115 before granting you a $100 loan?

• A)Credit union
• B)Finance company
• C)Federal savings bank
• D)Department store
• E)Commercial bank

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Definitions:

Risky

Associated with or exposed to a high level of uncertainty and the possibility of experiencing loss or harm.

Debt Financed

The use of borrowed funds to finance projects, acquisitions, or investments, often under terms of repayment with interest.

Invested-Capital Financed

A financial strategy involving the use of both debt and equity to fund a company's operations and investments.

Stock Price Manipulation

Refers to various schemes aimed at artificially inflating or deflating the price of a stock or other securities in the market, often to benefit a particular group or individual at the expense of general investors.