Is the economic model of decision-making intended as a literal description of how individuals, firms, and the governments actually make decisions

The correct response as per the given statement is "No".

Explanation:

No, but the given model has never been the dictionary definition of how transactions or judgments are currently taken by people, organizations, and companies. Economic models allow everybody to differentiate as well as organize complex sequences of underlying causes functionally that unique expression awareness among the target in less than an economy. These were founded on observations and the formation of overly simplistic circumstances.

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