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________ Is formed from the dorsal aorta
Default Risk
The risk that a debtor will not make the required payments on their obligations, leading to financial loss for the creditor.
Higher Interest Rates
Increased costs of borrowing which can impact loan demand, savings rates, and overall economic activity.
Debt Covenants
Restrictions lenders put on borrowing agreements to maintain certain financial ratios and ensure the borrower's financial stability.
Signaling Function
The act of conveying information indirectly through actions or behaviors, often used in economics and finance to indicate future intentions or the current state of affairs.
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