The risk that a borrower will fail to meet some or all of his or her promised principal and/or interest payments on a loan is called:
A) Inflation risk
B) Market risk
C) Currency risk
D) Default risk
E) Investment risk
F) Political risk
G) Money risk
H) None of the above

Question

Quizplus · Accepted Answer

Default risk is specifically the risk that a borrower will not be able to make the required payments on their debt, including both principal and interest.

The Risk That a Borrower Will Fail to Meet Some