ECONOMICS (CBSE/UGC NET)

ECONOMICS

ECONOMIC INSTITUTIONS

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

Brooke is smart, financially stable, and is looking for a loan that offers a low interest rate and not much risk. Where should she apply for a loan at?

A	Title Pawn
B	Payday Lender
C	Bank
D	Credit Union

Explanation:

Detailed explanation-1: -The cheapest loans in India are secured loans like home loans. They come with low interest rates but the usage is restricted. For example, you can take a home loan only when you’re buying a home.

Detailed explanation-2: -Personal loan from a bank or credit union Banks or credit unions typically offer the lowest annual percentage rates, or total cost of borrowing, for personal loans.

Detailed explanation-3: -Discuss payday loans, title loans, and pawn shops. Unusual sources to get credit. They are not the best way to get credit because of the high interest, they are not a good deal and you should avoid these credits.

Detailed explanation-4: -Unsecured loans are loans that are not backed by any security or collateral. In case of a default, the lender cannot use any collateral to recover the loan amount from the borrower.

There is 1 question to complete.