The Fact That Borrowers Sometimes Default on Their Loans by Declaring

question 67

Multiple Choice

The fact that borrowers sometimes default on their loans by declaring bankruptcy is directly related to the characteristic of a bond called

• A)credit risk.
• B)interest risk.
• C)term risk.
• D)private risk.

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Definitions:

Stigma Consciousness

A psychological construct that refers to the extent to which an individual expects to be stereotyped by others.

Group Membership

The act of belonging to a social group, which influences an individual's identity, attitudes, and behaviors.

Majority Group

refers to the segment of a population that constitutes more than half of its entirety or holds a dominant position in a social hierarchy.

Stigma Consciousness

The awareness and concern about being judged or discriminated against based on a personal trait or social stigma.