Cumulative Exam — Cumulative exam

Question 21 • EA Academy Civics 9

What is predatory lending?

Answer

when banks treat borrowers unfairly to make larger profits

when banks refuse to give loans to people who qualify for them

when banks agree to give people loans but then refuse to provide the money

when banks don’t make a large profit on the loans they provide to borrowers

Explanation

Predatory lending occurs when a lender uses unfair or deceptive practices to exploit borrowers, often through harmful loan terms that increase the lender’s profits. Choice A describes this; refusing loans to qualified borrowers or failing to provide agreed loan funds are different practices.

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