Description: IF you can’t divide 300 by 2, should you qualify for a loan? That is one of the questions raised by a new study led by a Columbia University assistant business professor, Stephan Meier, who found that borrowers with poor math skills were three times more likely than others to go into foreclosure.
Questions for discussion:
- What does the study suggest about the ethics of lending money?
- How should lenders and borrowers respond to this information?
- Should the financial services industry use a “test” to establish the risk associated with the borrower?