There Are Many Concerns for Risk-Averse Lenders

question 78

Multiple Choice

There are many concerns for risk-averse lenders.Consider the following: 1.Lenders are concerned that borrowers with the greatest risk are the ones most likely to actively pursue loans.2.Lenders are concerned that real GDP will decline leading to reduced corporate profits.3.Lenders are concerned that products produced by certain corporations will become obsolete.

• A)1 is market risk;2 is firm-specific risk
• B)2 is market risk;3 is firm-specific risk
• C)3 is market risk;1 is firm-specific risk
• D)2 is firm-specific risk;3 is market risk

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Definitions:

Attitude Toward Advertisement

An individual's predisposition or judgement about the value or quality of advertising in general or of a specific ad.

Affect

A broad range of feelings that individuals experience, encompassing both emotions and moods.

Attitude Object

Any entity that is the focus of an individual's attitude, including people, products, or concepts.

Zajonc's Hierarchy

A theory that proposes the sequence of cognitive processes involved in the appraisal of stimuli, emphasizing the primacy of affective responses over cognitive evaluations.