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QuizMultiple Choice

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Question 1 • TX-Personal Financial Literacy and Economics

What are the characteristics of payday loans?

Answer
A
delayed repayment period, low interest
B
flexible repayment period, no interest
C
long repayment period, low interest
D
short repayment period, high interest

Explanation

Payday loans are typically due on the borrower’s next payday, so they have a short repayment period. They also charge very high fees relative to the amount borrowed, which can amount to high interest. Therefore, the correct choice is “short repayment period, high interest.”

AI-written and checked against the verified answer.

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