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    Question

    Which of the following terms refers to the risk arising

    from a borrower's failure to meet the terms of a loan agreement?
    A Market Risk Correct Answer Incorrect Answer
    B Operational Risk Correct Answer Incorrect Answer
    C Credit Risk Correct Answer Incorrect Answer
    D Legal Risk Correct Answer Incorrect Answer
    E Liquidity Risk Correct Answer Incorrect Answer

    Solution

    Credit risk is the risk of loss due to a borrowerтАЩs failure to repay a loan or meet contractual obligations.

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