Credit cards typically provide lower risk-adjusted returns than other types of consumer loans.

Name: Credit cards typically provide lower risk-adjusted returns than other types of consumer loans.
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Question

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Credit cards typically have higher interest rates and fees compared to other types of consumer loans, which can result in higher returns for lenders. However, the risk of default on credit card loans is also higher, making the risk-adjusted returns lower compared to other types of loans.

Credit Cards Typically Provide Lower Risk-Adjusted Returns Than Other Types