Question

what is universal default?
a a practice of raising interest rates based on unrelated credit behavior
b a method to reduce penalty fees
c a policy that eliminates interest rates
d a system for forgiving consumer debt
question 18 (1 point)
who was disproportionately affected by banks responses to new regulations?
a government agencies
b consumers and small businesses
c large corporations
d affluent cardholders

Explanation:

For the first question, universal default refers to creditors increasing interest rates due to a borrower’s negative credit activity on an unrelated account. For the second question, consumers and small businesses often lack the resources of large corporations or affluent individuals, making them more vulnerable to banks’ adjustments in response to new regulations.

Answer:

a. A practice of raising interest rates based on unrelated credit behavior
b. Consumers and small businesses