Steering and Targeting Occur When a Lender Manipulates a Borrower

question 41

True/False

Steering and targeting occur when a lender manipulates a borrower into accepting a loan product that benefits the lender but is not the best loan for the borrower.

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Definitions:

Perfectly Competitive Firms

Businesses that operate in a market where prices are dictated by supply and demand, and where no single buyer or seller has market control.

Homogeneous Products

Undifferentiated outputs; products that are identical to or indistinguishable from one another.

Price Takers

Market participants who accept the prevailing market price without having the influence to change it due to their relatively small size in the market.

Loss-minimizing

A strategy employed by businesses to reduce the amount of financial losses incurred during unfavorable market conditions or through poor operational decisions.