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The Government of Ugania Had Been Extending Huge Amounts of Loans

question 115

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The government of Ugania had been extending huge amounts of loans to the business enterprises in the country.However,the borrowers failed to generate the profits necessary to repay their debts.As a result,national banks in Ugania had a lot of nonperforming assets on their books,and the Uganian currency was devalued.In this context,the business enterprises in Ugania are most likely to face which of the following type of risk?

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Definitions:

Tort of Defamation

A civil wrong that involves making false statements about someone that harm their reputation.

Intoxicated

A state of being affected by substances such as alcohol or drugs, which impair cognitive functions and physical abilities, leading to reduced control and judgment.

Unconscionability

A condition in which a contract or a clause within the contract is deemed unjust or extremely one-sided in favor of the party with more power.

Fraud

Deceptive action intended to result in financial or personal gain or to cause harm to another party.

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