Basics Beginner: Peer-to-Peer Lending

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1.
Peer lending Websites act as ________.
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Brokers. The role of the lending site is to broker the transactions.
2.
The lack of an intermediary in peer lending results in _______ overhead costs overall.
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Lowered. As a rule, there is lower overhead due to many services being cut out.
3.
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.
4.
Peer-to-peer lending is the practice of lending money to others without going through _______.
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Traditional financial institutions. Peer lending seeks to avoid traditional banks and other financial institutions.
5.
In the world of peer lending, indirect lending refers to_______.
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Several people lending to one person, or one person lending to several people. This method of lending is intended to reduce the risk to the lender(s) in case of any one instance of default.