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CTFA · Question #317

CTFA Question #317: Real Exam Question with Answer & Explanation

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Question

Sometimes, as a condition of receiving an installment loan, a borrower is required to buy credit life insurance. From borrower's perspective, credit life insurance not a good deal because:

Options

  • AIts very costly
  • BIt does little more than give lenders a lucrative source of income
  • CIt increases market interest charges
  • DIt increases inflation

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