Which of the Following Can Be a Possible Effect on a Borrowing

question 52

Multiple Choice

Which of the following can be a possible effect on a borrowing nation if the real interest rate on the loans rises?

• A)The fixed costs of nonrepayment can increase
• B)There will be a higher incentive to default
• C)a default imposes a smaller penalty on the borrower
• D)A default imposes a bigger penalty on the borrower

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Definitions:

Anglo Saxon Protestants

A social group historically associated with the white, Protestant, largely upper-class segment of the population in the United States, often abbreviated as WASP.

WASPs

An acronym for White Anglo-Saxon Protestants, often referring to a socio-economic and cultural elite in the United States.

Assimilation

The process by which individuals or groups adopt the culture, customs, and values of another group, losing their original identity.

Cultural Pluralism

A societal condition in which diverse cultural, racial, or religious groups are present and maintain their practices while coexisting respectfully and equitably.