P2P Lending in Banking Industry
5 Questions
1 Views

Choose a study mode

Play Quiz
Study Flashcards
Spaced Repetition
Chat to lesson

Podcast

Play an AI-generated podcast conversation about this lesson

Questions and Answers

What is the primary way in which banks earn profit according to the traditional banking model?

  • Charging borrowers high interest rates
  • Benefiting from the spread between deposit and lending rates (correct)
  • Investing in ventures through crowdfunding
  • Earning a fee from P2P lending firms

    • What benefit do savers receive from P2P lending as compared to traditional banking?

  • Tax-free deposits
  • Immediate withdrawals
  • Higher interest rates (correct)
  • Lower risk

    • Why might it take time for all of a large deposit to be lent out in P2P lending?

  • Acceptance of high-risk borrowers
  • Low demand for loans
  • High interest rates for borrowers
  • Limited availability of suitable borrowers (correct)

    • What is a key drawback associated with immediate withdrawals in P2P lending?

    <p>Reduced interest rate on remaining funds</p> Signup and view all the answers

    How does crowdfunding differ from traditional P2P lending?

    <p>Crowdfunding relies on donations rather than loans.</p> Signup and view all the answers

    More Like This

    Investment Banking Industry Quiz
    10 questions

    Investment Banking Industry Quiz

    TenaciousKoala avatar
    TenaciousKoala
    Banking Industry and ICT
    29 questions

    Banking Industry and ICT

    StunnedVoice avatar
    StunnedVoice
    Commercial Banking Industry Structure
    32 questions

    Commercial Banking Industry Structure

    AmazingGlockenspiel avatar
    AmazingGlockenspiel
    Banking Industry MCQs
    54 questions

    Banking Industry MCQs

    GladCircle avatar
    GladCircle
    Use Quizgecko on...
    Browser
    Open
    Browser
    Browser