The Average Default Rate in the Economy Is 1

question 10

Multiple Choice

The average default rate in the economy is 1.5% of the face value of outstanding debt defaults per year. How many years will it be on average before half the firms are no longer in existence if no new firms enter the economy?

• A) 44 years
• B) 45 years
• C) 46 years
• D) 47 years

---

Definitions:

Multi-Partite

Pertaining to or involving multiple parties, sides, or factions, often used in the context of graphs or agreements.

Antivirus Software

A program designed to detect, prevent, and remove malware, including viruses, from computers and networks.

File Types

Categories or formats of files, determined by their contents and usage, such as text, image, video, or application files.

Coupled Reaction

A coupled reaction is a chemical reaction where an energetically unfavorable reaction is driven by an energetically favorable one, often involving the transfer of electrons or energy.