Question

question 7 of 8
a lender offers frank a high - interest loan based on the amount of his next paycheck. hell have to pay it back quickly, within the next month. which type of predatory loan offer did frank experience?
select a response.
○ bait and switch
○ payday loan
○ hidden fees
○ phishing scam

Explanation:

A payday loan is a short-term, high-interest loan that is tied to a borrower's next paycheck, requiring full repayment quickly, typically by their next payday (within a month). Bait and switch involves misleading advertising for a different product/service, hidden fees are undisclosed charges, and phishing scams are fraudulent attempts to steal personal information, none of which match the described loan type.

Answer:

Payday loan