In Evaluating a Borrower's Creditworthiness,income and Expenses Are Carefully Reviewed,but

question 93

True/False

In evaluating a borrower's creditworthiness,income and expenses are carefully reviewed,but assets are not relevant.

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Definitions:

Primacy Effect

The tendency to remember information at the beginning of a list better than information in the middle or end.

Recency Effect

The tendency to remember the latest information encountered when recalling a list or series of items.

Fundamental Attribution

The tendency to overemphasize personality traits and underestimate situational factors when explaining others' behavior.

Reciprocity

A mutual exchange of privileges, benefits, or actions between people, where one's action leads to a response of a similar kind.