The Likelihood That a Customer Will Fail to Repay Credit

question 32

Multiple Choice

The likelihood that a customer will fail to repay credit extended to it is referred to as ____.

• A) default risk
• B) maturity risk
• C) bad-debt loss ratio
• D) opportunity cost

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Definitions:

Output Activity

Measures of the amount of work performed or products produced by a company or a specific process within a given period.