Question
QUESTION 23 Which of the following statements is FALSE? A. Long-term loans are more likely to be made under a loan commitment agreement than short-term
QUESTION 23 Which of the following statements is FALSE? A. Long-term loans are more likely to be made under a loan commitment agreement than short-term loans. B. The amount of security or collateral on a loan and the interest rate or risk premium on a loan normally are negatively related. C. At some point, further increases in interest rates on specific loans may decrease expected loan returns because of increased probability of default by the borrower. D. A secured loan has a claim to specific assets of the borrower in the case of default. E. Credit rationing is a form of managing credit risk.
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