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      Question

      Credit risk is

      _____________.
      A Risk of loss arising from the creditor. Correct Answer Incorrect Answer
      B Risk of loss arising from a borrower who does not make payments as promised. Correct Answer Incorrect Answer
      C Risk of loss arising from failed internal processes. Correct Answer Incorrect Answer
      D Risk of loss arising due to system failure. Correct Answer Incorrect Answer
      E None of these. Correct Answer Incorrect Answer

      Solution

      Credit risk is the risk of loss arising from a borrower who does not make payments as promised.

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