Default Risk

question 88

Multiple Choice

Default risk

• A) is the probability that a borrower will not pay in full the promised coupon or principal.
• B) exists only for the bonds of small corporations.
• C) is also known as market risk.
• D) is zero for bonds issued by cities and states.

Identify the role of misinformation in altering recollections and eyewitness testimony.

Explain the mechanisms of memory encoding, storage, and retrieval.

Describe how external influences, such as media reports and leading questions, can distort memory.

Understand the techniques that may induce or foster false memories, including hypnosis and guided imagery.