Which of the Following Observations Concerning Payday Lenders Is NOT

question 26

Multiple Choice

Which of the following observations concerning payday lenders is NOT true?

• A)They provide short-term cash advances.
• B)Their advances are due when borrowers receive their next paycheque.
• C)The industry originated from cheque cashing outlets.
• D)The payday loan industry is regulated at the provincial and territorial level.
• E)The demand for short-term loans has decreased considerably.

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Definitions:

Explicitly Colludes

A situation where companies or individuals openly agree to work together, often illegally, to manipulate prices or markets.

Price-and-quantity-fixing

Practices by which firms set the price and output levels to control market conditions, often regarded as anti-competitive.

Collusion

A secret or illegal cooperation or conspiracy, especially between firms, to deceive or gain an unfair advantage.

Demand Curve

The Demand Curve depicts the relationship between the price of a product and the amount of it that consumers are willing to purchase at various prices, usually sloping downward from left to right.