Which of the Following Is a Benefit to the Lender

question 27

Multiple Choice

Which of the following is a benefit to the lender in a loan rescheduling?

• A)The FI may become locked into a particular loan portfolio structure.
• B)Rescheduling may close the market for future loans.
• C)Rescheduling may create interruptions in the flow of international trade since letters of credit may be more difficult to acquire.
• D)The FI may receive additional fees, collateral, and option features on the loan.

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Definitions:

Attribution Theory

A theory that explains how individuals infer the causes of their own and others' behaviors and events.

Selective Attention

The focusing of conscious awareness on a particular stimulus while ignoring others, essential in processing information efficiently.

Self-fulfilling Prophecy

A psychological phenomenon in which a person's or group's belief or expectation brings about its own realization or outcome.

Stereotyping

Making generalized assumptions about individuals or groups based on perceived characteristics, often leading to prejudiced attitudes or actions.