Multiple choice

‘Sub-prime’ refers to

  1. lending done by banks at rates below PLR

  2. funds raised by banks at sub-libor rates

  3. group of banks which is not rated as prime bank as per Banker’s Almanac

  4. lending done by financing institutions including banks to customers not meeting with normally required credit appraisal standards

  5. All of the above
Reveal answer Fill a bubble to check yourself
D Correct answer
Explanation

Correct answer is (4). 

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