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    Different Borrowers Have Different Risks of Bankruptcy,and If a Borrower
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Different Borrowers Have Different Risks of Bankruptcy,and If a Borrower

Question 3

Question 3

True/False

Different borrowers have different risks of bankruptcy,and if a borrower goes bankrupt,its lenders will probably not get back the full amount of funds that they loaned.Therefore,lenders charge higher rates to borrowers judged to be more likely to go bankrupt.

Correct Answer:

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