Which Lender Is Likely to Ask You to Write a Check

question 85

Multiple Choice

Which lender is likely to ask you to write a check for $115 before granting you a $100 loan?

• A)Credit union
• B)Payday advance company
• C)Federal savings bank
• D)Department store
• E)Commercial bank

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Definitions:

Fixed Costs

Costs that do not change with an increase or decrease in the amount of goods or services produced or sold.

Corporate Tax Rate

The percentage of a company's taxable income that it pays to federal, state, or local tax authorities.

Demand Shock

An event that affects the demand for goods and services in the economy.

Money Supply

The sum of all financial assets present in an economy at a given time, encompassing cash, coins, and the amounts in checking and savings accounts.