Which of the Following Statements Is True

question 5

Multiple Choice

Which of the following statements is true?

• A)A lender wishing to provide funds to a borrower residing in a foreign country only needs to consider the credit quality of the borrower.
• B)A lender wishing to provide funds to a borrower residing in a foreign country only needs to consider the sovereign risk quality of the country in which the borrower resides.
• C)A lender wishing to provide funds to a borrower residing in a foreign country should consider either the credit quality of the borrower or the sovereign risk quality of the country in which the borrower resides.
• D)A lender wishing to provide funds to a borrower residing in a foreign country should consider both the credit quality of the borrower and the sovereign risk quality of the country in which the borrower resides.

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Definitions:

Arousal Level

The state of being physiologically alert, awake, and attentive.

Somatic Marker Hypothesis

The idea that changes in the body, experienced as emotion, guide decision making.

Emotion Script

Predefined patterns or sequences of emotional responses expected in certain situations or contexts.

Somatic Marker Hypothesis

The theory that emotional processes guide (or bias) behavior, particularly decision-making, via bodily feelings.