A Credit Rating Indicates the Expected Likelihood That a Borrower

question 56

True/False

A credit rating indicates the expected likelihood that a borrower will miss interest or principal payments and possibly default on the debt obligation in the form of a loan, mortgage, or bond.

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Definitions:

Unpredictable Amount

A quantity or volume that cannot be precisely foreseen or estimated due to varying factors or conditions.

Negative Reinforcement

A process in operant conditioning by which the removal or avoidance of an unpleasant stimulus increases the likelihood of a behavior being repeated.

Time-Out

A behavioral intervention technique that involves temporarily removing an individual from an environment where undesired behavior has occurred, to decrease the likelihood of the behavior's recurrence.

Make-Up Exam

A test or examination given to a student who missed the original date, providing an opportunity to make up for the missed assessment.