Different Borrowers Have Different Risks of Bankruptcy, and Bankruptcy Is

question 23

True/False

Different borrowers have different risks of bankruptcy, and bankruptcy is costly to lenders.Therefore, lenders charge higher rates to borrowers judged to be more at risk of going bankrupt.

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Definitions:

Chronic Illness

A long-lasting health condition that may not have a cure and requires ongoing management.

Adolescence

The transitional stage of physical and psychological development that generally occurs during the period from puberty to legal adulthood.

Disability

A physical or mental condition that limits a person's movements, senses, or activities, affecting their daily life and participation in society.