ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The least expensive loans are often provided by parents or other family members. The most expensive loans are often provided by parents or other family members. The easiest loans to obtain are also the least expensive. Interest paid on a credit card is a tax-deductible.

Detailed explanation-2: -Inexpensive Loans Parents or other family members are often the source of the least expensive loans-loans with low interest.

Detailed explanation-3: -The most expensive loans are available from finance companies, retailers, and credit cards. Borrowing from car dealers, appliance stores, department stores, and other retailers is relatively inexpensive.

Detailed explanation-4: -With open-end credit, you receive a credit line with a limit that you can draw from as needed, only paying interest on what you borrow. Common examples of open-end credit are credit cards and lines of credit. As you repay what you’ve borrowed, you can draw from the credit line again and again.

Detailed explanation-5: -A consumer loan provides structure and predictability in your finances and you know exactly how much you need to pay back each month. Lower interest than credit card debt. A consumer loan enables you to refinance smaller and more expensive loans.