Question

If Doria needs a short-term loan, what type of loan would you recommend she seek and from what type of financial institution? Justify your recommendation.

Answer 1

Explanation:

Short term loans are loans which are normally needed in order to take care of an emergency.

Doria can get short term loans from banks. To get this she has to be an already existing member of this bank.

She can also get from credit unions. Their rate of interest is usually smaller than the banks own and to access a loan she has to be an already existing customer of the union.

Also there are payday loans that she can lend from and pay back on her next pay day.

I would recommend borrowing from the credit union and the reason is simple, the interest rate is lower. So what she would be paying back in addition to her loan amount is going to be low.