Financial mistakes earlier in his life have caused Ajax to have a blem

QUESTION

Financial mistakes earlier in his life have caused Ajax to have a blemished credit history, and he’s now willing to pay a higher rate of interest to compensate for the fact of his increased credit risk. What type of loan will he likely qualify for?

A) Super-NOW loan
B) derivative
C) investment loan
D) subprime loan
E) prime loan

ANSWER

Answer: D
Explanation: D) Subprime loans are loans for people with limited or blemished credit histories and which carry a higher rate of interest to compensate for the increased credit risk.