Anthony Newton Wants to Buy a New Sail Boat

question 92

Multiple Choice

Anthony Newton wants to buy a new sail boat. He makes a down payment of $10,000 which represents 20% of the value of the sail boat he is purchasing. In which way is Anthony reducing his lender's risk?

• A) He is sharing the interest rate risk with his lender.
• B) He is pledging valuable assets that can be seized if the loan is not repaid.
• C) He is taking a larger stake in the asset he is purchasing.
• D) He is repaying the loan over a faster period of time.
• E) None of these.

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Definitions:

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A breach in aseptic technique that introduces the risk of contamination by pathogens.

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A needle that has been sterilized and covered with a cap to maintain its sterility until it is used for medical procedures.

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Regions of the cerebral cortex located at the sides of the brain, involved in processing auditory information and encoding memory.

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The outer layer of the brain's cerebrum, involved in complex brain functions such as thought, memory, and consciousness.