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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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