Which of the Following Statements Is False

question 25

Multiple Choice

Which of the following statements is false?

• A)Default risk is the risk that the borrower is willing but unable to fulfil the terms promised under loan contract.
• B)Default risk is the risk that the borrower refinances the loan before maturity.
• C)Default risk is the risk that the borrower is able but unwilling to fulfil the terms promised under loan contract.
• D)Default risk is the risk that the borrower is unable and unwilling to fulfil the terms promised under loan contract.

---

Definitions:

Financial Performance Measures

Metrics used to evaluate an organization's financial health, including profitability, liquidity, and solvency ratios.

Set-up Time

The amount of time required to prepare a machine, process, or system for a manufacturing or production run.

Non-financial Measure

Performance measures that are not expressed in monetary units but rather in terms of physical units, percentages, indexes, or any other non-monetary metrics.

Customer Satisfaction Rating

A measure, often expressed as a percentage or scale, of the degree to which customers are happy with a product or service.