Basics Beginner: Peer-to-Peer Lending

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1.
Loans made via peer-to-peer lending can range greatly in size, but the majority of them are _______.
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Very small. Most such loans are small.
2.
If you give out a loan on a peer-to-peer lending Website, you must also service it throughout its term.
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False. The site itself may do that, or another party may. It depends on the site, ultimately.
3.
If you loan money to another person in the form of an unsecured loan, what must you rely on to ensure that the person will pay the loan back to you?
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The borrower's credit rating. Unsecured loans are not "secured" by collateral or anything else; therefore, the lender relies on the borrower's credit rating.
4.
A common advantage of peer lending -- as opposed to traditional financial institutions -- is that there is a lot of information provided about the loans offered.
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False. On the whole, there is less information on peer lending sites than there is from traditional financial institutions.
5.
Peer-to-peer lending is generally a not-for-profit activity.
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False. In general, lenders seek to make a profit on the money they lend.