To determine which option is a source of a less formalized loan, let's examine each choice:

1. **Finance Company**: Typically, finance companies provide loans with formal agreements and terms. They often require proof of income and may have strict repayment terms.

2. **Payday Lender**: Payday lenders offer short-term loans with high-interest rates and often require little documentation. While they are less formal than banks, they still follow specific regulations.

3. **Family Member or Friend**: Loans from family members or friends tend to be less formalized. There may not be a written contract, and the terms can be more flexible and based on personal trust.

4. **Bank or Credit Union**: Banks and credit unions provide loans with formal applications and contracts, requiring detailed financial information.

Based on this analysis, the best answer is **Family member or friend** as they typically engage in less formal lending arrangements compared to the other options.

Question

To determine which option is a source of a less formalized loan, let's examine each choice:

1. **Finance Company**: Typically, finance companies provide loans with formal agreements and terms. They often require proof of income and may have strict repayment terms.

2. **Payday Lender**: Payday lenders offer short-term loans with high-interest rates and often require little documentation. While they are less formal than banks, they still follow specific regulations.

3. **Family Member or Friend**: Loans from family members or friends tend to be less formalized. There may not be a written contract, and the terms can be more flexible and based on personal trust.

4. **Bank or Credit Union**: Banks and credit unions provide loans with formal applications and contracts, requiring detailed financial information.

Based on this analysis, the best answer is **Family member or friend** as they typically engage in less formal lending arrangements compared to the other options.

Knowee AI · Accepted Answer

To determine which option is a source of a less formalized loan, let's examine each choice:

1. **Finance Company**: Typically, finance companies provide loans with formal agreements and terms. They often require proof of income and may have strict repayment terms.

2. **Payday Lender**: Payday lenders offer short-term loans with high-interest rates and often require little documentation. While they are less formal than banks, they still follow specific regulations.

3. **Family Member or Friend**: Loans from family members or friends tend to be less formalized. There may not be a written contract, and the terms can be more flexible and based on personal trust.

4. **Bank or Credit Union**: Banks and credit unions provide loans with formal applications and contracts, requiring detailed financial information.

Based on this analysis, the best answer is **Family member or friend** as they typically engage in less formal lending arrangements compared to the other options.

Which of the following is a source of a less formalized loan?Finance companyPayday lenderFamily member or friendBank or credit union

Question

Which of the following is a source of a less formalized loan?

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