Which of the Following Consumer Loans Has Grown in Popularity

question 134

Multiple Choice

Which of the following consumer loans has grown in popularity as a result of the passage of the Tax Reform Act of 1986?

• A)Credit card loans
• B)Home equity loans
• C)Long-term,noninstallment loans
• D)Short-term,installment loans
• E)All of the options are correct

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Definitions:

Monopoly Power

Monopoly Power describes the ability of a company or entity to control the price and supply of a product or service, due to the lack of significant competition.

Lump-Sum Payment

A single payment made at a particular time, as opposed to multiple payments over time.

Natural Monopoly

A market condition where a single firm can supply a product or service to an entire market at a lower cost than what two or more firms can, often due to significant fixed or startup costs.

Competitive Level

Refers to the state of competition within a market where firms strive to gain an advantage over each other.