12
QuizMultiple Choice

Saving and Making Financial Decisions — Test

Question 12 • Personal Finance

Which is an example of predatory lending?

Answer
A
A bank charges lenders additional hidden fees on a mortgage.
B
A bank offers higher interest rates on newly opened savings accounts.
C
A bank allows customers to transfer their credit card balances.
D
A bank waives a new account fee for direct deposit checking accounts.

Explanation

Predatory lending involves unfair or deceptive practices that exploit borrowers, such as concealing extra charges in a loan. Hidden fees on a mortgage can mislead borrowers about the true cost of borrowing, so choice A is the example. The other choices describe savings-account rates or ordinary banking services, not deceptive lending.

AI-written and checked against the verified answer.

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