Since Commercial Finance Companies Offer Loans to Higher-Risk Customers Than

question 160

Multiple Choice

Since commercial finance companies offer loans to higher-risk customers than commercial banks, the interest rates they charge are usually ________ than rates charged by banks.

• A) higher
• B) lower
• C) more predictable
• D) subject to lower taxes

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Definitions:

Unemployment Benefits

Financial payments made by the government to individuals who are unemployed and meet certain eligibility requirements.

Income Taxes

Taxes levied by governments on the income generated by individuals or entities, which vary according to the level of income earned.

Federal Budget Surpluses

Occurs when a government's income exceeds its spending during a particular fiscal year.

Market Globalization

The process of integration and interaction among different national markets, leading to a global marketplace with diminished trade barriers.