The answer from given choice is "C", "Payday Lender" is not a type
of bank.
Payday lender involve the basic loan procedure where a lender
is providing a short-term loan which
has to be paid back when the borrower's next payday come, that is a
simple loan process which has nothing to do with a bank.
Option C is correct. A payday lender is not a type of bank.
Further Explanation:
Bank provides various services to the customer. Bank provides the facility of savings to the customer and also provides the loan to the customer. The customer saves his income and getting interest in it. When the customer takes a loan from the bank, the bank charged the interest on the loan amount. The main function of the bank is to provide the facility of savings and loans.
Justification for the correct and incorrect answer:
A.
Credit union: This option is incorrect.
A credit union is a type of bank that is a not - profit making organization. The main purpose of this bank is to save the money for future use and provides a loan at a less interest rate.
B.
Online bank: This option is incorrect.
Online bank refers to internet banking in which the customer transfers the funds. It is also a type of bank that provides the facility of transferring the funds.
C.
Payday lender: This option is correct.
A payday lender is not a type of bank. The lender provides loans to the borrower on the agreement at a higher interest rate. The main purpose of this is to provide loans at a higher rate.
D.
Retail bank: This option is incorrect.
A retail bank is also a type of bank. This is a local branch of the large banks, the customer directly goes to this bank and do the transactions.
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Answer details:
Grade: Middle School
Subject: Accounting
Chapter: Banking
Keywords: retail banking, payday lender, is not a type, of bank, various services, saves income, provides loan, at a lower interest rate, facility, credit union, online bank, payday lender, retail bank.
