Asked by Syanindita Kirana Larashira on May 12, 2024
Verified
A sub-prime loan is
A) at a very high interest rate,sometimes as high as 30%.
B) at a rate 1% above the prime rate of interest.
C) at an interest below the prime rate of interest.
D) the preferred loans of the very wealthy in the United States.
Sub-Prime Loan
A type of loan that is offered at a rate above prime to individuals who do not qualify for prime rate loans, usually because of poor credit histories.
Prime Rate
Rate of interest that banks charge their most creditworthy customers.
- Recognize the historical and religious attitudes towards charging interest.
Verified Answer
KJ
Katherine JohnsonMay 19, 2024
Final Answer :
A
Explanation :
A sub-prime loan is a type of loan that is offered to borrowers who do not qualify for prime interest rates due to a poor credit score or other risk factors. Sub-prime loans typically come with very high interest rates, sometimes as high as 30%.
Learning Objectives
- Recognize the historical and religious attitudes towards charging interest.