Common Practices Used by Dishonest Lenders Include All of the Following

question 1

Multiple Choice

Common practices used by dishonest lenders include all of the following, except the lender

• A) prohibiting the borrower from purchasing insurance or other financial services as a condition of the loan.
• B) charging high loan fees which cause financing costs to be much higher than the quoted rates.
• C) requiring that the borrower purchase insurance or other financial services.
• D) requiring a large balloon payment that will necessitate additional financing to pay it off.

---

Definitions:

Overhead Efficiency

The measurement of how effectively a business or project manages its overhead costs.

Fixed Overhead Budget

A plan that outlines anticipated fixed costs that do not vary with the level of production or sales.

Fixed Overhead Volume

The quantity of fixed overhead costs that do not change with the level of production or activity.

Standard Cost

An estimated or predetermined cost of performing an operation or producing a good, used in budgeting and pricing decisions.