📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!

    âš¡ Month End Offer - Flat 52% Off On All Courses! Enroll Now âš¡
    00:00:00 AM Left

    Question

    Which of the following products of a bank can have

    credit risk? A. fund based loans B. non fund based loans C. treasury products
    A only A and C Correct Answer Incorrect Answer
    B only A and B Correct Answer Incorrect Answer
    C only B and C Correct Answer Incorrect Answer
    D only A Correct Answer Incorrect Answer
    E All the above Correct Answer Incorrect Answer

    Solution

    Credit risk the risk of loss due to default  by the customer to meet the commitments of the product. A credit risk may arise in the loans and advances extended by the bank, either in form of fund based loans (like term loans) or non-fund based loans (like bank guarantees). A credit risk may also occur in treasury products when a bond/debt instrument invested in, defaults in its obligations.

    Practice Next
    More Financial Management Questions

    Relevant for Exams:

    ask-question