Which of the Statements Below Is FALSE

question 48

Multiple Choice

Which of the statements below is FALSE?

• A)A part of the default premium has to do with the frequency of default by the borrower.
• B)For the home loan,the collateral (the house)is an asset that will increase in value over time (in general),compared with a car loan in which the collateral (the car)decreases in value over time.
• C)With a car,the potential loss due to default is less than a house because the growing value of the asset should be sufficient to cover the outstanding balance (principal)of the loan.
• D)A personal credit card essentially has no collateral,so the potential loss is even higher if the customer defaults on his or her credit card payments.

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Definitions:

Transient Ischemic Attack

A temporary blockage of blood flow to the brain, often called a mini-stroke, which can signal risk for a future stroke.

Sensory Perceptual Alterations

Changes or disturbances in the way an individual perceives their environment through their senses, often linked to neurological disorders.

Alzheimer Disease

A progressive neurological disorder that causes memory loss, cognitive decline, and eventually, loss of ability to carry out daily activities.

Lorazepam

A medication belonging to the benzodiazepine class used to treat anxiety disorders, insomnia, and seizures.