Patricia Newton is going to buy a new car,and she needs to apply for a loan to cover the purchase.She knows she can get a loan for up to 6 years,but she would prefer a shorter-term loan.She selects a 4-year loan.Patricia reducing her lender's risk by:

Question

Quizplus · Accepted Answer

Repaying the loan faster reduces the lender's risk because the shorter loan term means less time for potential financial difficulties or changing circumstances that could affect Patricia's ability to make payments. This reduces the likelihood of defaulting on the loan, which is the main risk for the lender.

Patricia Newton Is Going to Buy a New Car,and She