Uncertainty that a borrower will repay what is owed is best described as:
A) currency risk.
B) open interest.
C) spot market risk.
D) counterparty risk.

Name: Uncertainty that a borrower will repay what is owed is best described as: A) currency risk. B) open interest. C) spot market risk. D) counterparty risk.
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Question

Quizplus · Accepted Answer

Counterparty risk refers to the uncertainty or risk that one of the parties involved in a financial transaction might not fulfill their obligation, such as repaying a loan.

Uncertainty That a Borrower Will Repay What Is Owed Is