Why is the offering of "teaser loans" by commercial banks a cause of economic concern? 1. The teaser loans are considered to be an aspect of sub-prime lending and banks may be exposed to the risk of defaulters in future. 2. In India, the teaser loans are mostly given to inexperienced entrepreneurs to set up manufacturing or export units. Which of the statements given above is/are correct?

1. Teaser loans are loans offered by banks with a low initial interest rate that increases significantly after a certain period. 2. Statement 1 is correct: This structure resembles sub-prime lending characteristics because it can attract borrowers who might struggle with the higher future payments, increasing the risk of default for the commercial banks. This was a significant economic concern. 3. Statement 2 is incorrect: While some teaser loans might have gone to entrepreneurs, they were not predominantly targeted specifically at inexperienced ones for manufacturing or export units in India. A major segment for such loans, for instance, was housing. 4. Therefore, only statement 1 accurately reflects the major economic concern associated with teaser loans.