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.

---

Definitions:

Self-Esteem

A person's overall subjective sense of personal worth or value, how much a person appreciates, likes, or approves of themselves.

Role Confusion

A stage in Erik Erikson's psychosocial development theory where adolescents may experience uncertainty about their identity and role in society.

Identity Development

The process through which individuals form their unique personal identity, considering their personality, beliefs, and values.

Role Crisis

A situation in which an individual experiences uncertainty or conflict about their societal or personal role, often occurring during major life transitions.