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Discussion

'Subprime lending' is a term applied to the loans made to ___________________________.
 

  • A.Those borrowers who do not have a good credit history
  • B.Those borrowers who have a good credit history
  • C.Those borrowers who do not have a good debit history
  • D.Those borrowers who have a good debit history

Answer: A

These loans are characterized by higher interest rates, poor quality collateral, and less favorable terms in order to compensate for higher credit risk.

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