The Fixed Cost of Loan Origination and Servicing Explains Why

question 13

True/False

The fixed cost of loan origination and servicing explains why finance companies prefer small shorter-term loans over large longer-term loans.

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Definitions:

High Standardization

The process or practice of implementing and developing technical standards based on the consensus of different parties.

Automotive Products

Goods and materials manufactured for use in vehicles, including parts, accessories, and fuels.

General Online Merchant

is a broad term for a business that sells a wide range of products through an online platform, catering to a diverse consumer base.

Consumer Electronics

Electronic devices intended for everyday use by individuals, including smartphones, televisions, and personal computers.