Consumer loans, by this definition: Some of the most expensive Least borrower-friendly More are coming from a greater number of questionable lenders
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can you explain this as if you were reporting in front.
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- Which of the following situations are likely to result in higher loan defaults? Mortgages are held by originating institutions in their portfolios. Borrowers have higher equity in their homes. Lenders who require documentation of income, liabilities and asset ownership. Borrowers with low credit scores.Do you think that IFRS 9 may make loans more expensive for borrowers? Implementation of IFRS 9 will influence borrower make less loan? Is there any needs of improvement with the relationship between borrowers and financial companies?In the credit market model with asymmetric information, determine how a consumer will respond to an increase in the fraction of bad borrowers in the population. And discuss how the credit market model with asymmetric information shows how a financial crisis can reduce consumption.
- What are the advantages and disadvantages of direct lending for the consumer? What can banks do to limit the disadvantages?Banks tend to focus their loans in one industry so that they can specialize on that industry and reduce the credit risk of their loan portfolio. Group of answer choices: True FalseWhy do federally guaranteed loans usually have the least risk for banks, List some popular guaranteed loan programs.
- Your company provides credit to customers. Someof these customers default on their loans, with verynegative implications for you. Describe how you coulduse discriminant analysis to learn what distinguishesthe customers who default on their loans from thosewho pay back their loans. How might you use such amodel?Most credit cards charge a relatively high rate of interest, yet many people carry them, including people who would be considered low-risk borrowers. Our discussion of adverse selection said that low-risk borrowers should have been discouraged from these. What gives?Why is the Fed’s discount window considered the “lender of last resort” for some banks?
- What is subprime lending, it's advantages & disadvantages? with real life examplesWe think of banks as being interest rate intermediaries. That is, the borrow cheaply, and then lend at higher rates, and the spread between those is their profit. But, besides interest rates, what other sorts of risks do banks face?please answer and explain What does a proper loan structure accomplish for the borrower and the lender? A. Supports everyday operations; maximizes flat fees charged for the loan B. Minimizes interest fees; restricts the client from making any risky decisions C. Satisfies financial needs; optimizes profitability D. Maximizes available funds; charges the highest interest rate
