Several Companies,some of Them Operating Through the Internet,offer "Paycheque Advances

question 29

Multiple Choice

Several companies,some of them operating through the Internet,offer "paycheque advances." Consumers are encouraged to take out a loan against a paycheque they expect to receive in the near future.These short-term loans with high-interest rates,and high penalties for late payments,are often marketed to consumers who do not have traditional bank accounts.These companies could most easily be criticized for which of the following?

• A) Shoddy products
• B) Poor service to disadvantaged consumers
• C) High-pressure selling
• D) High advertising and promotion costs
• E) Excessive markups

Understand the relationship between trade deficits/surpluses and national welfare.

Comprehend the basics of the foreign exchange market and exchange rate mechanisms.

Understand the concept of balance of payments and its components.

Learn the effects of currency appreciation and depreciation on a nation's economy.