A High-Risk Premium Makes Default More Likely

question 171

True/False

A high-risk premium makes default more likely.

---

Definitions:

Stressors

External pressures or events that cause stress, challenging an individual's ability to cope and potentially affecting their well-being.

General Adaptation Syndrome

A model that describes the body's short-term and long-term reactions to stress, introduced by Hans Selye, consisting of three stages: alarm, resistance, and exhaustion.

Continued Exposure

Continued exposure refers to the repeated or prolonged contact with a stimulus or environment, often used as a psychological treatment method.

Stress

A physiological, psychological, or emotional element that induces stress in the body or mind, potentially contributing to the development of illnesses.