Different Borrowers Have Different Risks of Bankruptcy,and If a Borrower

question 3

True/False

Different borrowers have different risks of bankruptcy,and if a borrower goes bankrupt,its lenders will probably not get back the full amount of funds that they loaned.Therefore,lenders charge higher rates to borrowers judged to be more likely to go bankrupt.

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Definitions:

Situational Attributions

The process of explaining an individual's behavior as being the result of external circumstances or the situation, rather than internal personality characteristics.

Roles

The functions or parts played by individuals in a particular social, professional, or other contexts.

Peripheral Route Persuasion

A method of persuasion that relies on superficial cues or endorsements, rather than logical argument, to influence opinions or attitudes.

Offering Evidence

The act of providing information, facts, or data to support a claim, argument, or hypothesis.