Question

True or False? If a creditor believes there's a risk that you may default, or fail to repay,

the rate you'll have to pay for credit will be lower than someone who seems to pose less
risk.

Answer 1

Answer: false

Explanation: A higher level of default risk leads to a higher required return, and in turn, a higher interest rate.

because it makes you a risk when you default

Answer 2

true

Step-by-step explanation: