THE GREAT DEPRESSION 1929 1940
THE GREAT DEPRESSION
|
Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
|
|
|
Interest rates on loans were too high.
|
|
|
Banks required an application to get a loan.
|
|
|
People did not know where to get a loan.
|
|
|
People could not make payments on loans.
|
Detailed explanation-1: -If you do not repay your loan, the lender can take you to court. The court will then require that you pay back the amount in full or face other penalties such as wage garnishment or seizure of assets. The lender may also report the debt to credit bureaus and send debt collectors after you if payments become overdue.
Detailed explanation-2: -Three common credit problems are: Lack of enough credit history. Denied credit application. Fraud and identity theft.
Detailed explanation-3: -Financial irresponsibility could cause legal action against you. If you’re not financially responsible, you could end up in so much debt that you need to declare bankruptcy. Or, you might end up with a creditor suing you, a bank foreclosing on you, or a car loan lender repossessing your vehicle.
Detailed explanation-4: -If the borrower fails to repay the loan, the lender has the right to sell the asset or collateral to obtain payment. Property such as land titles, deposits with banks, livestock are some common examples of collateral used for borrowing.