Question

The credit system today is structured to accommodate a state of uncertain employment and income instability, utilizing high interest rates and fees to turn huge profits.
True or False.

Answer 1

Answer:

The credit system today is structured to accommodate a state of uncertain employment and income instability, utilizing high interest rates and fees to turn huge profits. This statement is True.

Explanation:

Since 1970, the credit industry of United States is growing. Credit is marketed also very well because they take high interest rates and fees and continue to flourish by earning huge profits with these.

Banks also lend more money to consumers as they earn high profits by taking more interest rates. Though this credit is actually not good for an individual's financial condition, as they have to re-pay the credit in addition of the high interest. So, the credit structure is designed such that it can sustain high unemployment and income instability these days. Thus, the given statement is True.