There Are Many Concerns for Risk-Averse Lenders

question 78

Multiple Choice

There are many concerns for risk-averse lenders.Consider the following: 1.Lenders are concerned that borrowers with the greatest risk are the ones most likely to actively pursue loans.2.Lenders are concerned that real GDP will decline leading to reduced corporate profits.3.Lenders are concerned that products produced by certain corporations will become obsolete.

• A)1 is market risk;2 is firm-specific risk
• B)2 is market risk;3 is firm-specific risk
• C)3 is market risk;1 is firm-specific risk
• D)2 is firm-specific risk;3 is market risk

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Definitions:

HDL Cholesterol

High-density lipoprotein cholesterol, often referred to as "good" cholesterol, which helps reduce the risk of heart disease.

LDL Cholesterol

Low-density lipoprotein cholesterol, often referred to as "bad" cholesterol, associated with an increased risk of heart disease.

Triglycerides

A type of fat found in the blood, used by the body for energy, and considered important for health, yet high levels can increase the risk of heart disease.

Blood Sugar

The concentration of glucose present in the blood, crucial for energy production in the body.