Default on a Loan Occurs When

question 16

Multiple Choice

Default on a loan occurs when

• A)the borrower is unable to make principal or interest payments when due.
• B)the borrower pays off the loan early.
• C)The true risks of making the loan were not considered.
• D)The borrower pays the principal early but not the interest payments.

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Definitions:

Alan Hodgkin

A British physiologist and biophysicist who, along with Andrew Huxley, elucidated the ionic mechanism underlying nerve impulse transmission, work for which they received the Nobel Prize.

Andrew Huxley

A British physiologist and biophysicist who won the Nobel Prize for Physiology or Medicine in 1963, for his work on the basis of nerve impulse transmission.

Glutamate

An important neurotransmitter in the brain that plays a key role in learning and memory, also serving as a precursor for the synthesis of GABA in neurons.

Neurotransmitter

Chemical substances released by neurons to transmit signals across a synapse to another neuron, muscle, or gland.