When the Value of Loans Begins to Drop, the Net

question 27

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

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Definitions:

Type B

Type B personality is characterized by a relaxed, patient, and easy-going nature, in contrast to the more stress-prone Type A personality.

Slow To Anger

A temperament or personality trait of an individual who does not easily become angry or agitated, demonstrating patience and tolerance.

Hardy Personality

A person who seems to thrive on stress but lacks the anger and hostility of the Type A personality.

Challenges

Refers to obstacles or difficulties that need to be overcome.