Which of the following statements best demonstrates the concept of bounded rationality?
a. individuals make decisions as if they had understood and examined every possible alternative.
b. individuals make short-run choices that are not consistent with their long-term goals.
c. individuals do not intentionally make decisions that would leave them worse off.
d. individuals act in their own self-interest.

Secured loans are protected by collateral security. examples: title loans where the borrower uses the car title as collateral security interest rates are lower and repayments are longer therefore risk is low as a collateral security is given as guarantee to the bank in case of failure to pay the loanunsecured loans are not protected by collateral security but it is given on the creditworthiness of the borrower, trusting that she/he will pay on time. examples; payday loans is a short term loan where the borrower lends money from the bank and pays is back when the borrower receives his/her wages.interest rates are high and repayments are shorter. but the risk is high as no collateral security is given as a guarantee to the bank for payment of the loan