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Which of the following situations is similar to the externality effect?
APR
The Annual Percentage Rate, a measure used to calculate the cost of borrowing, including interest and other fees, shown as a yearly rate.
Payday Loan
A type of short-term borrowing where a lender provides high-interest credit based on a borrower's income and credit profile, typically to be repaid by the next payday.
Average Daily Balance
The average amount owed per day during a billing cycle.
Finance Charges
The cost of borrowing money on credit, including interest and other fees.
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