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Personal Finance Courses: Predatory Lending

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1.
Predatory lending can occur with which of the following?
Choose wisely. There is only one correct answer.
All of the above. All of these and many more can be involved in predatory lending. You should evaluate all of them carefully.
2.
As a general rule, which of the following will charge the LEAST amount of interest if you take out a loan?
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A loan from a bank or credit union. As a rule, these loans have the lowest interest rates and charge the least amount of interest.
3.
The interest rates of payday loans are very high.
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True. Payday loans have average annual interest rates of 500 percent--or more.
4.
If you have a short-term financial emergency, what is a low-cost way to obtain a loan?
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Emergency credit union loan. Many credit unions and banks offer relatively low-interest short-term loans that can help tide you over a short-term financial emergency.
5.
When you take out a payday loan, how long is the grace period for paying it back?
Choose wisely. There is only one correct answer.
There is no grace period. Payday loans do not offer grace periods; you must pay them back on your payday or you will be charged late fees.