The likelihood that a customer will fail to repay credit extended ot it is referred to as:
A) default risk
B) maturity risk
C) bad-debt loss ratio
D) opportunity cost

Question

Quizplus · Accepted Answer

The term "default risk" specifically refers to the possibility that a borrower will not be able to repay the credit extended to them. The other options listed are not as relevant to this concept.

The Likelihood That a Customer Will Fail to Repay Credit