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If the Borrower Defaults on the Loan or Otherwise Fails

question 101

True/False

If the borrower defaults on the loan or otherwise fails to honor the terms of the agreement, the lender can seize and sell the collateral to recover the value of the loan only if the borrower agrees that it is unlikely that the loan will be repaid.


Definitions:

Marginal Utility Per Dollar

The additional satisfaction obtained from spending one more dollar on a good or service.

Marginal Utility

The supplementary value or enjoyment experienced from the consumption of an additional unit of a good or service.

Money Income

Income received in the form of currency or through electronic transfers, as opposed to goods or services.

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