Question

​The __________ lending market makes loans to consumers who have bankruptcies, no credit history, low-to-moderate incomes, or a poor credit history. a. subprime​ b. ​suboptimal c. ​optimus prime d. ​subterranean

Answer 1

a. subprime

Step-by-step explanation:

​The subprime lending market makes loans to consumers who have bankruptcies, no credit history, low-to-moderate incomes, or a poor credit history.

Basically, a subprime lending market refers to the provision of loans to individuals (consumers) that are more likely to have difficulty in maintaining the agreed upon repayment plan.

As a result of the high credit risk associated with subprime lending market, a subprime loan is typically characterized by low quality collateral, higher interest rates and other below par lending terms.