Traditionally Credit Risk Is Defined as the Risk That the Borrower

question 9

Multiple Choice

Traditionally credit risk is defined as the risk that the borrower will fail to satisfy the terms of the obligation with respect to the timely payment of interest and repayment of the amount borrowed. This form of credit risk is called ________.

• A) spread risk.
• B) market risk.
• C) payment risk.
• D) default risk.

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