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What causes a tsunami? Compare the losses due to the Indonesian (2004) and Japan (2011) earthquakes. How could the loss of life and property have been minimized?
Default Risk
The risk of loss to a lender from the borrower’s failure to pay the full amount due including interest and principal.
Commercial Paper
An unsecured, short-term debt instrument issued by corporations, typically used for the financing of accounts receivable, inventories, and meeting short-term liabilities.
Bank Loan
A sum of money lent by a bank to a borrower at an interest rate, which is to be repaid with interest according to the terms of the loan agreement.
Interest Rate
The percent of principal charged by the lender for the use of its money.
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