Which of the Following Statements Is True

question 77

Multiple Choice

Which of the following statements is true?

• A) Unsecured loans generally involve very high interest rates as a result of the free-rider problem.
• B) Unsecured loans generally involve very high interest rates as a result of adverse selection.
• C) Unsecured loans are no longer made; all loans now must have some form of collateral.
• D) Unsecured loans are only made to individuals with very high net worth because it is the only way to limit the risk.

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Definitions:

Attrition

The process of reducing an HR surplus by allowing the size of the workforce to decline naturally because of the normal pattern of losses associated with retirements, deaths, and voluntary turnover.

HR Surplus

A situation in which the organization has more human capital than it requires in order to meet its current or forecasted human capital requirements.

Workforce

The total number of a country's or an organization's employees, including both the staff and the workers.

HR Demand

The organization's projected requirement for human capital.