When the Value of Loans Begins to Drop,the Net Worth

question 39

Multiple Choice

When the value of loans begins to drop,the net worth of financial institutions falls causing them to cut back on lending in a process called

• A)deleveraging.
• B)releveraging.
• C)capitulation.
• D)deflation.

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Definitions:

Testamentary Capacity

The legal and mental ability of a person to make or alter a valid will.

Oral Declaration

A statement or assertion made verbally rather than in writing, often legally significant if witnessed.

Uniform Premarital Agreement Act

A set of laws adopted by some states that provides a consistent legal framework for the content and enforcement of prenuptial agreements.

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Refers to the adoption of laws or regulations by individual states within a federated nation.