American Bankers Association Exam CRCM Topic 10 Question 66 Discussion

Actual exam question for American Bankers Association's CRCM exam

Question #: 66
Topic #: 10

[All CRCM Questions]

Below mentioned list shows the significant risks of _______________.

Borrowers with cash-flow difficulties

Borrowers with no lower-cost credit alternatives

Minimal analysis of borrower's ability to repay the loan

Minimal review of borrower's credit history

Credit is usually unsecured

APayday lending

BLoan flipping

CEquity stripping

DNone of these

Show Suggested Answer

Suggested Answer: B

by Lemuel at Mar 01, 2023, 04:23 AM

Limited Time Offer

25%

Off

Get Premium CRCM Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Timothy

3 months ago

I'm going with A) Payday lending. The risk factors are a dead giveaway. It's like taking financial advice from a Magic 8 Ball.

upvoted 0 times

Carrol

1 months ago

User 4: Yeah, it's better to explore other lower-cost credit alternatives.

upvoted 0 times

...

Desiree

1 months ago

User 3: I think it's important to be cautious with these types of loans.

upvoted 0 times

...

Rolland

2 months ago

User 2: Definitely, the risks listed match up with payday lending.

upvoted 0 times

...

Ceola

2 months ago

User 1: I agree, A) Payday lending seems like a risky option.

upvoted 0 times

...

Lashunda

3 months ago

A) Payday lending, no doubt. Those loans are a recipe for financial disaster. You might as well light your money on fire.

upvoted 0 times

Serina

2 months ago

C) Equity stripping is another risky practice. It can leave borrowers with nothing.

upvoted 0 times

...

Leoma

2 months ago

B) Loan flipping can also be dangerous. It's like digging a deeper hole.

upvoted 0 times

...

Jody

3 months ago

A) Payday lending is definitely risky. It can trap people in a cycle of debt.

upvoted 0 times

...

Loreen

4 months ago

Definitely A) Payday lending. The risks described are spot-on for that type of predatory lending. It's like a car crash waiting to happen!

upvoted 0 times

Zachary

2 months ago

C) Equity stripping is no walk in the park either.

upvoted 0 times

...

Tiara

2 months ago

B) Loan flipping can also be pretty dangerous.

upvoted 0 times

...

Bronwyn

3 months ago

A) Payday lending is a risky business for sure.

upvoted 0 times

...

Domitila

4 months ago

Hmm, I'm not sure. The options seem a bit tricky. I might have to go with D) None of these just to be safe.

upvoted 0 times

...

Shawn

4 months ago

I think the answer is A) Payday lending. All the risks mentioned are classic characteristics of payday loans.

upvoted 0 times

Tamra

2 months ago

It's true that minimal analysis of borrower's ability to repay the loan is a common issue with payday lending.

upvoted 0 times

...

Zack

2 months ago

Borrowers with no lower-cost credit alternatives are often the ones who turn to payday loans.

upvoted 0 times

...

Jesus

2 months ago

Yes, you're right. Payday lending is known for targeting borrowers with cash-flow difficulties.

upvoted 0 times

...

Josefa

2 months ago

A) Payday lending

upvoted 0 times

...

Ivette

2 months ago

The risks align more with payday lending, so it's not none of these.

upvoted 0 times

...

Marguerita

2 months ago

D) None of these

upvoted 0 times

...

Mila

3 months ago

Definitely not, the risks listed are more related to payday lending.

upvoted 0 times

...

Chaya

3 months ago

C) Equity stripping

upvoted 0 times

...

Lawana

3 months ago

B) Loan flipping

upvoted 0 times

...

Xuan

3 months ago

No, that doesn't match the risks mentioned.

upvoted 0 times

...

Talia

3 months ago

B) Loan flipping

upvoted 0 times

...

Hobert

3 months ago

Yes, you're right. Payday lending is known for these risks.

upvoted 0 times

...

Trinidad

3 months ago

Yes, you're right. Payday lending is known for these risks.

upvoted 0 times

...

Maile

3 months ago

A) Payday lending

upvoted 0 times

...

Dylan

3 months ago

A) Payday lending

upvoted 0 times

...

Celeste

4 months ago

I believe the risks also include minimal analysis of borrower's ability to repay the loan.

upvoted 0 times

...

Rana

4 months ago

I agree, borrowers with cash-flow difficulties are at risk with payday lending.

upvoted 0 times

...

Jolene

4 months ago

I think the significant risks are related to payday lending.

upvoted 0 times

...