Reference no: EM133125302

Questions -

Q1. Dinesh Dani flew to Toronto to attend his brother's wedding. Knowing that his family would be busy, he did not ask anyone to meet him at the airport. Instead, he planned to rent a car to use while in Toronto. He has no nationally known credit cards but is prepared to pay cash for the rental car. The car rental agency refuses to rent him a car, even though the agency has several cars available. Why do you think Dinesh is unable to rent a car?

Q2. Juan Villavera, a recent college graduate, has accepted a teaching position at Brockville High School. Juan moved to Brockville and applied for a car loan at the Royal Bank. He had never used credit or obtained a loan. The bank notified him that it will not approve the loan unless he had a co-signer. On what basis has the bank denied Juan credit?

Q3. Friedrich Reine has had a student loan, two auto loans, and three credit cards. He has always made timely payments on all obligations. He has a savings account of $2,400 and an annual income of $25,000. His current payments for rent, insurance, and utilities are about $1,100 per month. Friedrich has accumulated $12,800 in an individual retirement account. Friedrich's loan application asks for $10,000 to start up a small restaurant with some friends. Friedrich will not be an active manager; his partner will run the restaurant. Will he get the loan? Explain your answer.