If You Co-Sign a Loan

question 10

Multiple Choice

If you co-sign a loan

• A)you are not responsible for future payments on the loan.Your signature only indicates that you believe the borrower is credit worthy.
• B)you are only responsible for the remaining loan payments if the borrower becomes bankrupt.
• C)you are only responsible for the portion of the loan that you personally benefited from.
• D)you are financially responsible for the outstanding loan balance should the borrower stop repayments.

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Definitions:

Prereflective Thinking

A level of cognition occurring without conscious awareness or reflection on the thought process itself.

Dialectical Reasoning

A method of argument that involves the contradiction between two interacting forces, leading to their resolution and the development of a synthesis.

Contextual Intelligence

The ability to understand the limits of our knowledge and to adapt that knowledge to an environment different from the one in which it was developed.

Formal Reasoning

The process of following a set of rigorous procedures or rules to arrive at a conclusion, often used in mathematics and logic.