Banks face considerable risk.
A)insolvency
B)interest rate
C)credit
D)insolvency, interest rate, and credit

Question

Quizplus · Accepted Answer

Banks face considerable risk in insolvency, interest rate fluctuations, and credit defaults. Insolvency occurs when a bank is unable to pay its debts and fulfill its obligations. Interest rate risk occurs when a bank's borrowing and lending rates fluctuate, affecting the bank's profitability. Credit risk arises from the possibility of borrowers defaulting on their loans, which can result in losses for banks. Therefore, banks must manage these risks effectively to ensure their financial stability and avoid potential losses.

Banks Face Considerable Risk