What Is Default Risk

question 38

Multiple Choice

What is default risk?

• A) A problem that arises when a firm runs short of cash.
• B) The risk of asset prices rising too high.
• C) The chance that the borrower will fail to repay a loan.
• D) The risk associated with longer-term contracts.

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Definitions:

Cognitive Delays

Developmental lags where a child's cognitive abilities such as thinking, speech, and understanding develop slower than the typical rate for their age.

Autism

A developmental disorder characterized by challenges in social interaction, verbal and nonverbal communication, and repetitive behaviors.

Physical Neglect

The failure to provide necessary care, supervision, and protection for a dependent individual, leading to potential harm or health risks.

Underweight

A condition where an individual's body weight is considered lower than what is deemed healthy for their height.