Question

1--- What is the difference between debt rescheduling and debt repudiation?

A) Debt repudiation refers to a situation of outright cancelation of all current and futures debt obligations of a borrower.

B)Debt rescheduling refers to cancelation of interest only.

C) Sovereign risk

D) They are the same in monetary significance to the FI lender.

E) None of the above

2---- Which of the following is false?

A) Digital currencies can’t be fabricated or reversed arbitrarily by the sender, like they can be with credit card chargebacks.

B) P2P platforms usually deal in unsecured personal loans which can be used for virtually anything.

C) Digital currency has no intrinsic value.

D) The P2P platform reviews lenders and borrowers and provides verification of credentials, they keep personal information confidential, but each party knows the identity of the other.

E) All the above are true

3--- Which of the following is false?

A) The Small Business Administration (SBA) is a government agency designed to help small business owners.

B) SBA does not directly lend money, instead it helps partner business owners with other lenders in order to have more secure funding.

C) SBA loans are not guaranteed.

D) Some microfinance institutions have turned into predatory loan sharks.

E) All the above are true

Answer 1

Answer-

Q 1)

The correct Option is A. Debt repudiation which refers to the situation of outright cancellation by borrower of all current and future obligations like interest payments and principal amount.

The other Options are incorrect.

Option B is incorrect as Debt rescheduling refers to deferrment of payments during which new terms and conditions are signed.
Option C is incorrect as Sovereign risk is not related to Debt repudiation and Debt scheduling

Q 2)

The correct Options are E. All the above are True.

Option A is correct. Digital currencies or cryptocurrency cannot be counterfeited and transactions cannot be reversed arbitrarily by the sender like they can be as credit card chargebacks.

Options B is correct. Peer to Peer (P2P) lending  deals in unsecured personal loans which can be used for any purpose.
Options C is correct. Digital or Cryptocurrency currency has no intrinsic valuebut may have intrinsic value.
Options D is correct. The P2P platform reviews strictly all the credentials of borrowers and lenders but are confidential but each party knows the identity of the other.

Q 3)

The correct Option is E. All the above are True.

Option A is correct. The Small Business Administration (SBA) is an autonomous government agency established to help small business owners.
Option B is correct. SBA does not directly lend money however they provide access to the financial resources.
Option C is correct. SBA loans are not guaranteed but are delivered through intermediary lenders.
Option D is correct.