1. What is the primary characteristic of predatory lending? 1. Predatory lending involves taking advantage of someone's 2. Predatory lending involves offering loans with no interest. 3. Predatory lending is a form of government financial aid. 4. Predatory lending is a type of charitable donation.

Question

1. What is the primary characteristic of predatory lending? 1. Predatory lending involves taking advantage of someone's 2. Predatory lending involves offering loans with no interest. 3. Predatory lending is a form of government financial aid. 4. Predatory lending is a type of charitable donation.

Answer 1

The correct answer is **1. Predatory lending involves taking advantage of someone's ...** (vulnerability in a loan situation).Predatory lending practices target borrowers who are often in difficult financial situations or lack financial sophistication. These lenders use deceptive, unfair, or fraudulent practices to secure loans with high fees, exorbitant interest rates, and terms that ultimately harm the borrower. Options 2, 3, and 4 are incorrect and do not describe predatory lending.

Question

1. What is the primary characteristic of predatory lending? 1. Predatory lending involves taking advantage of someone's 2. Predatory lending involves offering loans with no interest. 3. Predatory lending is a form of government financial aid. 4. Predatory lending is a type of charitable donation.

Solution

Answer