Question
Look at the Focus on Ethics box (How Fair Is Check Into Cash) in Chapter 5 of the textbook. These, businesses quote an interest rate
Look at the Focus on Ethics box (How Fair Is Check Into Cash) in Chapter 5 of the textbook. These, businesses quote an interest rate of 15% to loan customers (most of whom are fairly unsophisticated) and yet the EAR of the loan is close to 400%. Explain the wide discrepancy between these rates. What do you believe is the correct regulatory response to these types of lenders?
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Finance Accumulation And Monetary Power
Authors: Daniel Woodley
1st Edition
0367338556, 978-0367338558
