'Subprime lending' is a term applied to the loans made to _________.

a. Those borrowers who do not have a good credit history

b. Those borrowers who have a good credit history

c. Those borrowers who do not have a good debit history

d. Those borrowers who have a good debit history

ANSWER: Those borrowers who do not have a good credit history

Explanation:

These loans are characterized by higher interest rates, poor quality collateral, and less favorable terms in order to compensate for higher credit risk.