27
QuizMultiple Choice

Credit, Interest, and Debt

Question 27 • Fall 24 GSE Physical Science B IC

Why might a person be tempted to borrow from a payday loan store?

Answer
A
The borrower has few other options due to income.
B
The borrower is drawn to the possibility of low rates.
C
The borrower could receive an increase in their pay.
D
The borrower likes the inexpensive fees of these loans.

Explanation

A person with low or irregular income may have trouble qualifying for other types of credit, so a payday loan can seem like one of the few available ways to get cash quickly. Payday loans generally have high costs, not low rates or inexpensive fees, so B and D are not good reasons.

AI-written and checked against the verified answer.

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