If a Lender Believes That a Particular Borrower Might Default

question 54

Multiple Choice

If a lender believes that a particular borrower might default, the lender will demand:

• A) a higher interest rate, to make the risk worth taking.
• B) more collateral, to ensure adequate compensation if the default occurs.
• C) a longer term on the loan, to give the borrower more of a chance to repay.
• D) that another bank is also involved in securing the loan.

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Definitions:

Dreaming

The experience of imagined images, sounds, or other sensations during sleep, typically occurring in the REM stage.

REM Sleep

A phase of sleep characterized by rapid eye movements, vivid dreaming, and heightened brain activity, essential for emotional regulation and memory consolidation.

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Physical activities that are of moderate intensity, such as brisk walking or cycling, which improve cardiovascular health without excessive strain.

Bedtime Ritual

A set of habits or routines performed before going to bed to help signal the body it's time to sleep and enhance the quality of sleep.