Posted by & filed under Part 1 Business in a Global Environment, Part 4: Marketing Management, Part 6 Managing Financial Resources.

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.

Source: NYTimes.com

Date: 06/09/2010

Link: http://www.nytimes.com/2010/06/13/realestate/13mort.html?ref=business

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?

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