Mr and Mrs Smith saw a television advertisement by Kron Bank. The advertisement said: “Come and see one of our amazing b

[answerhappygod]

Mr and Mrs Smith saw a television advertisement by Kron Bank.
The advertisement said:
“Come and see one of our amazing bank managers today. They can
advise you on how to
get the most out of your money without any risks.”
Mr. Smith went to see Kron’s bank manager, Mr. Gy, who told him
that if he signed a
document called “Flexible Charge” he would be able to receive
$150,000 with no interest. In
reality, the Flexible Charge was a new type of mortgage, in which
no repayments were
required unless the stock market fell by 30% in which case the loan
would be repayable in
full. Mr. Gy said that although the document was complicated but Mr
Smith did not need to
worry about it, that Mrs. Smith’s signature was also required, and
that, since Mr. Smith had
not invested money before, he should see a lawyer before the money
could be provided but
Mr Smith chose not to do so. Mr. Smith told Mrs. Smith that,
according to Mr Gy, Flexible
Charge was a wonderful idea because it meant that they could get
enough money to enjoy
their retirement without any risk of losing their home. Mr and Mrs
Smith signed the “Flexible
Charge” document and got the $150,000 from Kron Bank. Three years
later, the stock
market fell by 35% and Kron Bank is now demanding repayment of the
loan in full from Mr.
and Mrs. Smith failing which they would foreclose on their
home.
Advise Mr. and Mrs. Smith.