What Does It Mean for a Loan to Be in Default

question 11

Multiple Choice

What does it mean for a loan to be in default?

• A) when the borrower of the a loan fails to repay on schedule according to a loan contract, without the agreement of the lender
• B) when the borrower of a loan fails to repay on schedule according to a loan contract, with the agreement of the lender
• C) when the lender of a loan fails to supply the full amount of a loan to the borrower
• D) when the lender of a loan supplies the full amount of a loan to a borrower without any promise of being repaid
• E) when the lender of a loan fails to offer the promised sum

---

Definitions:

Human Nature

The inherent characteristics, including ways of thinking, feeling, and acting, that all humans are said to possess naturally.

Founding

The action of establishing something important, such as a nation, organization, or institution.

Federalism

A political system in which power is divided between a central authority and constituent political units, such as states or provinces.

Great Compromise

An agreement made during the Constitutional Convention of 1787 that in part established a two-house legislature, combining elements of both proportional and equal representation.