A Lender That Makes a Loan to an Individual Whose

question 85

Multiple Choice

A lender that makes a loan to an individual whose only income is commission based and who hasn't made a sale in six weeks may be violating which of the 6 Cs of lending?

• A)Character
• B)Capacity
• C)Cash
• D)Control
• E)Collateral

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Definitions:

Conscious Processes

Mental activities of which an individual is aware, involving perception, thinking, and remembering.

Hindsight Bias

The tendency to believe, after learning an outcome, that we would have foreseen it. (Also known as the I-knew-it-all-along phenomenon.)

Double-Blind Procedure

An experimental procedure in which both the research participants and the research staff are ignorant (blind) about whether the research participants have received the treatment or a placebo. Commonly used in drug-evaluation studies.

Placebo Effect

Experimental results caused by expectations alone; any effect on behavior caused by the administration of an inert substance or condition, which the recipient assumes is an active agent.