Which of the following describes a situation where a high APR is assessed?

A high Annual Percentage Rate (APR) is typically associated with situations where there is an increased risk to the lender, often due to the borrower's history or the specifics of the loan. Default rates reflect instances where borrowers fail to make payments as agreed, which signals to lenders a higher risk of loss. To compensate for this increased risk, lenders often charge higher APRs to borrowers who might be seen as less reliable or who have previously defaulted on loans. This is a form of risk-based pricing, where the cost of borrowing reflects the likelihood of the borrower defaulting on the loan.

In contrast, teaser rates are often low introductory rates that might not accurately reflect the true cost of borrowing over time. Fixed rates provide stability in payments but do not inherently indicate a high APR, as they can vary widely among borrowers. No-annual-fee offers typically suggest more favorable terms meant to attract borrowers, thus not correlating directly with high APRs.