Question

13) Why are student loans usually guaranteed by the government?

A) Banks charge low interest rates for student loans.

B) Banks are required to maintain a certain reserve ratio.

C) Banks cannot expect students to have collateral.

D) Banks would give students credit cards they can't afford.

Answer 1

the answer is c

Step-by-step explanation:

Banks don't have any collateral for student loans. In most cases, the guarantor for student loans is the government. This is because the banks do not have any collateral for the students since, in most cases, students do not have properties or assets that can be used to secure the loan.