Applying for a Loan in Five-Person Groups Is an Example

question 92

Multiple Choice

Applying for a loan in five-person groups is an example of:

• A) family and friends lending.
• B) party of five lending.
• C) group responsibility.
• D) trade-off.

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Definitions:

Savings and Loan Debacle

A financial crisis in the United States during the 1980s and 1990s involving the failure of savings and loan associations, largely due to risky business practices.

Checkable Deposits

Consist of money in bank accounts that can be drawn upon by writing a check or using a debit card, offering immediate liquidity.

Savings and Loans

Financial institutions that specialize in accepting savings deposits and making mortgage and other loans.

Credit Card Companies

Financial institutions that issue credit cards to consumers, facilitating electronic payment transactions and extending credit.