Default Risk Is the Risk That a Borrower Will Not

question 83

True/False

Default risk is the risk that a borrower will not pay interest and/or repay the principal on a loan or other debt instrument according to the agreed contractual terms.

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Definitions:

Courts

Institutions that have the authority to adjudicate legal disputes between parties and administer justice in civil, criminal, and administrative matters.

Law

A set of regulations developed and implemented by social or governmental bodies to control actions.

Royal Assent

The formal approval by a monarch to a bill that has passed both houses of parliament, making it law.

Governor General

The representative of the monarch in a Commonwealth country, performing various ceremonial, symbolic, and constitutional functions.