Question

Sub-prime lending rates are 1) __________ than prime lending rates and are for people with 2)__________ credit.

a. 1) higher 2) poor
b. 2) higher 2) good
c. 1) lower 2) poor
d. 1) lower 2) good

Answer 1

I think the correct answer from the choices listed above is option D. Sub-prime lending rates are higher than prime lending rates and are for people with good credit. A subprime loan is a type of loan offered at a rate above prime to individuals who do not qualify for prime rate loans. Hope this answers the question.