'Responsible Lending' Under the National Credit Code Encompasses Obligations on the Part

question 52

Multiple Choice

'Responsible lending' under the National Credit Code encompasses obligations on the part of the licensed credit provider not to provide credit that is:

• A)High interest and short term.
• B)Unlikely to generate a good return for the lender.
• C)Unsuitable for the consumer.
• D)In fact low-doc or payday lending.

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Definitions:

GDP

Gross domestic product, a monetary measure of the market value of all final goods and services produced in a country during a specific period.

Federal Expenditures

The spending by the federal government of a country, typically on public services, defense, welfare programs, and infrastructure.

Transfer Payments

Payments made by the government to individuals without any expectation of a direct return service or goods, such as social security benefits.