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.

---

Definitions:

Conflict

A perceived incompatibility of actions, goals, or ideas.

Insecure Attachment

A type of attachment style where individuals may show anxiety or avoidance in close relationships, stemming from early interactions with caregivers.

Avoidant Attachment

A type of insecure attachment style characterized by difficulty in establishing close emotional relationships, preferring independence over seeking comfort from others.

Anxious Attachment

An attachment style characterized by a high level of anxiety and insecurity, often resulting in a deep fear of abandonment and excessive neediness in relationships.