If You Cosign a Loan, All of the Following Are

question 103

Multiple Choice

If you cosign a loan, all of the following are true except,

• A)you are being asked to guarantee the debt.
• B)it is your legal responsibility to pay the debt.
• C)you'll have to pay only a portion of the debt if the borrower does not pay.
• D)the creditor must first try to collect from the borrower.
• E)the creditor can garnish your wages.

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Definitions:

Pluralistic Ignorance

A psychological state where individuals wrongly believe their thoughts, feelings, or behaviors are different from those of the majority, often leading to conformity with perceived norms.

Informational Influence

This occurs when an individual conforms to a group's behavior under the assumption that the group possesses more accurate information.

Private Acceptance

The genuine alignment of one's internal beliefs or attitudes with those of a group, without external pressure.

Dissenter

An individual who expresses disagreement or non-conformity with the prevailing opinions or practices.