Daniel owns his own computer repair shop. Business has not been good, so Daniel's credit limit has been exhausted, and he needs a short-term loan to help him stay in business. Which institution, known as the lender of last resort, would Daniel most likely turn to for a loan?

Question

Quizplus · Accepted Answer

In this scenario, Daniel would most likely turn to a finance company, which is a business that offers short-term loans at substantially higher rates of interest than banks. Because of the high interest rates they charge and other factors, finance companies are typically the lender of last resort for individuals and businesses whose credit limits have been exhausted and/or those with poor credit ratings.

Daniel Owns His Own Computer Repair Shop