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What is PayPal?

• Name of a commercial bank

• An electronic commerce company that facilitates payments between parties through online transfers.

• An e-wallet and payments app that allows users to make payments and transfer money digitally.

• All are correct

Sending money to friends or family by PayPal costs no fees

• T

• F

PayPal does charge a fee for purchases

• T

• F

How much does PayPal charge for instant access to money?

• 2

• 1

• 1.5

• 2.5

What are some fees vary that based on the type of service?

• Opening account fees and Receiving Donations fees

• Purchase fees and transfer fees

• , Opening account fees and transfer fees

• Sending international personal transactions fees, Buying and Selling Cryptocurrencies fees

The P2P operator uses the online platform to directly match borrowers and investors rather than acting as a traditional financial intermediary.

• T

• F

Which of the following is not a benefit of P2P?

• Access for all – ‘democratic’

• Higher cost

• Faster, better customer service

• Disintermediation and economic efficiency

Peer-to-peer lending is a fairly straightforward process.

• T

• F

What are the risks of P2P lending?

• Credit risk: Loan defaults and capital loss

• No insurance/government protection

• Legislation

• The risk of the P2P site going bust

• All of the above answers

Which of the following sentences is correct?

• P2P lending’s good nature is helping connect lenders and borrowers directly with each other.

• P2P lending has become a usury practice.

• A regulatory framework is not needed to regulate the P2P lending platform and avoid its demise