ECONOMICS (CBSE/UGC NET)

ECONOMICS

MONEY

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

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

Short term loan designed to take advantage of people with harsh interest rates that YOU SHOULD NEVER USE is called?

A	Mortgage
B	Car Loan
C	Bank Loan
D	PAYDAY LOAN

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: -A payday loan is usually repaid in a single payment on the borrower’s next payday, or when income is received from another source such as a pension or Social Security.

Detailed explanation-3: -These loans usually come with high fees and interest charges. Payday loans are also known by other names, including cash advance loans and check loans.

Detailed explanation-4: -Some examples of short-term loans are personal loans, payday loans, auto title loans, and refund-anticipation loans. Each type of loan can offer quick repayment periods, often as short as a few weeks, but some can only be used for specific purposes.

There is 1 question to complete.