..... provide short-term loans to individuals facing a gap between their income and expenses. Usually, those accessing loans through ..... lack access toother types of short-term loans like credit cards. ..... make loans based on an individualscollateral. Collateral is a valuable item one owns (i.e., car). Lenders can sell the collateral to cover the value of an outstanding loan if the borrower cannot repay the loan. Like payday loans, the fees associated with ..... are usually much higher than those a bank would charge. In the case of ....., the inability to repay the loan could result in the loss of the vehicle or what is used as collateral.A) Commercial BanksB) Credit UnionsC) Title Pawn LenderD) Payday Lender

ECONOMIC INSTITUTIONS

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

____ provide short-term loans to individuals facing a gap between their income and expenses. Usually, those accessing loans through ____ lack access toother types of short-term loans like credit cards. ____ make loans based on an individual’scollateral. Collateral is a valuable item one owns (i.e., car). Lenders can sell the collateral to cover the value of an outstanding loan if the borrower cannot repay the loan. Like payday loans, the fees associated with ____ are usually much higher than those a bank would charge. In the case of ____, the inability to repay the loan could result in the loss of the vehicle or what is used as collateral.A) Commercial BanksB) Credit UnionsC) Title Pawn LenderD) Payday Lender

A	Commercial Banks
B	Credit Unions
C	Payday Lenders
D	Title Pawn Lenders

Explanation:

Detailed explanation-1: -Payday loans are short-term loans that allow you to access cash quickly and sometimes require full repayment with interest at your next payday. Payday loans can be a risky choice because the interest rates are usually much higher than other types of credit.

Detailed explanation-2: -Key Takeaways. A short-term loan is a credit facility extended to individuals and entities to finance a shortage of cash. Examples include credit card, bank overdraft, trade credit. This makes it is possible to buy goods or services from a supplier on credit rather than paying cash up front.

Detailed explanation-3: -Call money is a short-term, interest-paying loan made by a financial institution to another financial institution. Due to the short term nature of the loan, it does not feature regular principal and interest payments, like longer-term loans typically do.

Detailed explanation-4: -Short term personal loans are loans which can be repaid within a period of 1-2 years. Short term personal loans are unsecured loans. Thus, there is no requirement to post any collateral as security. These funds are quickly credited to your account after the loan gets approved.

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ECONOMICS (CBSE/UGC NET)

ECONOMICS

ECONOMIC INSTITUTIONS