The Likelihood That Borrowers Are Ill and Would Not Be

question 141

Multiple Choice

The likelihood that borrowers are ill and would not be able to make interest and principal payments is an example of

• A) interest rate risk.
• B) credit risk.
• C) liquidity risk.
• D) capital adequacy risk.

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Definitions:

Behavior Control

Techniques or strategies used to change or manipulate actions or responses to achieve desired outcomes.

Obsessions

Persistent, unwanted, and intrusive thoughts or urges that cause significant anxiety or distress.

Compulsions

Repetitive behaviors or mental acts that a person feels driven to perform in response to an obsession or according to rules that must be applied rigidly.

Involuntary Ideas

Thoughts that occur spontaneously without the individual's intention, often uncontrollable and persistent.