Question

which of the following financial institutions may an individual visit to get money from a check if they do not have a traditional bank account?
a. credit union
b. mortgage company
c. check cashing service
d. payday lender

which of the following financial institutions receives criticism for targeting people in poverty and other vulnerable populations through charging extremely high interest rates?
a. pawn shops
b. check cashing services
c. credit unions
d. payday lenders

Explanation:

First Sub - Question (Which of the following financial institutions may an individual visit to get money from a check if they do not have a traditional bank account?)

• Option a: Credit union - Credit unions typically require membership and often a bank - like account setup to cash checks, so not suitable for non - account holders.
• Option b: Mortgage company - Mortgage companies deal with home loans and do not provide check - cashing services for non - account holders.
• Option c: Check cashing service - Check cashing services are specifically designed to cash checks for individuals, even those without a traditional bank account, by charging a fee.
• Option d: Payday lender - Payday lenders mainly offer short - term loans, not check - cashing services for non - account holders.

• Option a: Pawn shops - Pawn shops use personal items as collateral and their interest rates, while high, are not as associated with targeting poverty - stricken populations for high - interest loans as payday lenders.
• Option b: Check cashing services - Check cashing services charge fees for cashing checks, not high - interest loans, so they are not the ones criticized for high - interest rate lending to vulnerable groups.
• Option c: Credit unions - Credit unions are non - profit and offer relatively low - interest rates and better financial services for members.
• Option d: Payday lenders - Payday lenders are known for offering short - term loans with extremely high - interest rates, often targeting low - income and vulnerable populations who have limited access to traditional banking.

Answer:

c. Check cashing service

Second Sub - Question (Which of the following financial institutions receives criticism for targeting people in poverty and other vulnerable populations through charging extremely high interest rates?)