recently, a bank was trying to decide what fee to charge for "expedited payments"long dash payments that the bank would transmit extra speedily to enable customers to avoid late fees on cable tv bills, electric bills, and the like. to try to determine what fee customers were willing to pay for expedited payments, the bank conducted a survey. it was able to determine that many of the people surveyed already paid fees for services that exceeded the maximum fees that they said they were willing to pay. this illustrates that

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan

1) d 2) d 3) c 4) d 5) a 6) c 7) a 8) b 9) a 10) a 11) d 12) c 13) c 14) d 15) a 16) a 17) d 18) c 19) c 20) c