11-32 The amount of leverage of a borrower and the probability of default are positively related,but only after some minimum level of debt.

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This statement is true. As a borrower takes on more debt and has a higher leverage ratio, the probability of default increases. However, this relationship is not noticeable until a certain minimum level of debt is reached. It is only after this threshold that the risks associated with higher leverage begin to impact the borrower's ability to meet their debt obligations.

11-32 the Amount of Leverage of a Borrower and the Probability