What Does It Mean for a Loan to Be in Default

question 11

Multiple Choice

What does it mean for a loan to be in default?

• A) when the borrower of the a loan fails to repay on schedule according to a loan contract, without the agreement of the lender
• B) when the borrower of a loan fails to repay on schedule according to a loan contract, with the agreement of the lender
• C) when the lender of a loan fails to supply the full amount of a loan to the borrower
• D) when the lender of a loan supplies the full amount of a loan to a borrower without any promise of being repaid
• E) when the lender of a loan fails to offer the promised sum

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Definitions:

Offshoring

The practice of shifting work previously done by domestic workers to workers located abroad.

Trading Partner

A country or organization which engages in international trade with another entity, typically exchanging goods, services, or information.

Comparative Advantage

The ability of a country or firm to produce a particular good or service at a lower opportunity cost than its trading partners, forming the basis of international trade.