A Line of Credit Creates a Liability for the Borrower

question 204

True/False

A line of credit creates a liability for the borrower when it is granted by the bank.

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Definitions:

Avoidance Learning

A process by which an individual learns to prevent the occurrence of an unpleasant or harmful stimulus by taking specific actions.

Extinction Learning

A phenomenon in which a conditioned response decreases and eventually disappears as the conditioned stimulus is repeatedly presented without the unconditioned stimulus.

Negative Reinforcement

A behavioral principle where the removal of an unfavorable event following a response increases the likelihood of that response being repeated in the future.

Positive Reinforcement

A technique in behavior modification that involves the addition of a rewarding stimulus following a desirable behavior, aiming to increase the likelihood of the behavior's occurrence.