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

question 36

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:

Group Norms

Shared expectations and rules that guide behavior of members within a group, influencing conformity and group dynamics.

Social Comparisons

The process of comparing oneself to others in order to evaluate or enhance one's own qualities or abilities.

Ethical Issue

A dilemma or situation that requires a choice to be made between competing values or principles.

Milgram's Obedience

A series of experiments conducted by Stanley Milgram, demonstrating people's willingness to obey authority figures even when asked to perform actions conflicting with their personal conscience.