Refund Anticipation Loans

question 122

Multiple Choice

Refund anticipation loans

• A)are generally high cost sources of credit.
• B)are regularly provided by the Internal Revenue Service.
• C)generate interest cost deductions in the subsequent tax year.
• D)are prohibited in most states.

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Definitions:

Moral Hazard

Moral hazard refers to situations where one party engages in riskier behavior because they know another party bears the risk.

Collision Car Insurance

A type of auto insurance that covers damage to the policyholder's car resulting from a collision with another vehicle or object.

Safe Driver

An individual who operates vehicles in a manner that minimizes risks and adheres to road safety laws, often qualifying for lower insurance rates.

Actuarial Calculations

Mathematically based evaluations of insurance and finance risks, primarily used in the insurance industry and pension fund management.