you were taking out a personal loan, the highest rate would probably be charged by a

Question

Question 20 options:

commercial bank.

finance company.

member of your family.

credit union.
Question 21 (2 points)
The one-year loan rate for individuals is usually about the same as the one-year CD rate.
Question 21 options:

True

False

Answer 1

For Question 20, the highest rate for a personal loan would likely be charged by a finance company. Finance companies tend to offer loans to individuals with higher interest rates compared to commercial banks and credit unions, which often provide more favorable terms. Borrowing from family members typically comes with either no interest or lower interest rates.

For Question 21, the statement "The one-year loan rate for individuals is usually about the same as the one-year CD rate" is generally False. Loan rates tend to be higher than CD (Certificate of Deposit) rates because loans need to compensate for the higher risk to lenders, whereas CDs are considered low-risk investments for financial institutions.