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Which of the following personal loan options would be the most appropriate for use as an emergency source of funds?

a. Payday loan.
b. Installment loan.
c. Line of credit.
d. Deposit advance.

User Ageoff
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1 Answer

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Final answer:

A line of credit would be the most appropriate personal loan option for emergency funds, as it provides flexibility and lower interest rates.

Step-by-step explanation:

In the case of needing emergency funds, the most appropriate personal loan option would be a line of credit.

A line of credit allows you to borrow money up to a certain limit, and you only pay interest on the amount you borrow. It provides flexibility and can be used as a safety net for unexpected expenses.

On the other hand, payday loans should be avoided as they often come with high interest rates and short repayment terms, which can lead to a cycle of debt. Installment loans and deposit advances can also be used as emergency funds, but a line of credit offers more flexibility and usually has lower interest rates.

User Geoom
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