Section 1

Based upon this module's required reading, explain briefly how interest rates for borrowers, including high-interest borrowers like Jacquelyn, are determined. You might consider observations on p.

128 of our textbook.

Section 2

Identify and analyze one benefit sub-prime borrowers like Jacquelyn or society receives from high-interest borrowing.

Section 3

Recognizing that some states set interest rate maximums, identify and analyze one cost or negative effect that borrowers, including sub-prime borrowers like Jacquelyn, or society suffers as a result of high-interest borrowing.

Section 4

Why might firms or commercial or non-profit entities, including municipalities or governments conceivably turn to high-interest borrowing?

Section 5

Comment on limitations of lending to individuals and other entities with poor credit that you learned about in reflecting on sections 1-4.