Which of the Statements Below Is FALSE

question 20

Multiple Choice

Which of the statements below is FALSE?

• A)No part of the default premium has to do with the frequency of default by the borrower.
• B)For the home loan,the collateral (the house)is an asset that will increase in value over time (in general)compared to a car loan where the collateral (the car)decreases in value over time.
• C)With a house,the potential loss due to default is less than a car because the growing value of the asset should be sufficient to cover the outstanding balance (principal)of the loan.
• D)A personal credit card essentially has no collateral so the potential loss is even higher if the customer defaults on his or her credit card payments.

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Definitions:

Sexual Relations

Interactions between individuals that involve sexual activity or the expression of sexual feelings and desires.

Anthropologists

Scientists who study humans, their ancestors, and related primates, focusing on cultural, social, and biological aspects.

Social Constructs

Concepts, perceptions, or practices that are agreed upon by a society and can vary significantly from one culture to another.

Incest Taboo

The incest taboo is a cultural and social prohibition against sexual relations or marriage between persons considered to be closely related by blood.