When the Value of Loans Begins to Drop,the Net Worth

question 39

Multiple Choice

When the value of loans begins to drop,the net worth of financial institutions falls causing them to cut back on lending in a process called

• A)deleveraging.
• B)releveraging.
• C)capitulation.
• D)deflation.

Recognize the principles behind the liability of parents for their children's contracts and distinguish between contracts for necessaries and non-necessaries.

Identify when a contract can be ratified and the effects of ratification or disaffirmance on the legality of contracts entered into by minors.

Understand the conditions under which a person may be considered to have legal incapacity to enter into contracts and the consequences thereof.

Grasp the legal distinctions and consequences of entering into contracts that contain illegal subject matter or perform illegal actions.

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Definitions:

Respondent Behavior

Behavior that occurs as an automatic response to a certain stimulus.

Explorative Behavior

Actions taken to gather information about one's environment or to learn new things through direct experience.

Response Rate

The frequency at which a specific behavior is performed, often measured in experimental or observational studies to determine the effect of variables.

Fixed-Interval Reinforcement

A reinforcement schedule in which the initial response is reinforced only after a certain period of time has passed.