Payday lenders come in many forms, such as a corner-store lender, instant online loans, and which of the following?

• A. Investment banks
• B. Check-cashing outlets
• C. Credit unions
• D. Certified public accountants

Answer: (B)

Verified step by step guidance

1. Understand the context of payday lenders: Payday lenders are financial institutions or services that provide short-term loans to individuals, often with high interest rates. They are typically used by people who need immediate cash and may not have access to traditional banking services.
2. Identify the types of payday lenders mentioned in the problem: The problem lists corner-store lenders and instant online loans as examples of payday lenders.
3. Evaluate the options provided: The options include Investment banks, Check-cashing outlets, Credit unions, and Certified public accountants. Consider which of these aligns with the characteristics of payday lenders.
4. Focus on the correct answer: Check-cashing outlets are a type of payday lender because they provide financial services to individuals who may not have access to traditional banking, often including short-term loans.
5. Exclude irrelevant options: Investment banks, Credit unions, and Certified public accountants do not typically operate as payday lenders. Investment banks focus on large-scale financial transactions, credit unions are member-owned financial cooperatives, and certified public accountants provide accounting services rather than loans.