The risk that a customer with whom the bank has entered into a contract with,will fail to pay or to perform,forcing the bank to find a replacement contract with another party that may be less satisfactory is what form of risk listed below?
A)Counterparty risk
B)Interest-rate risk
C)Operating risk
D)Credit risk
E)Liquidity risk

Question

Quizplus · Accepted Answer

Counterparty risk is the risk that the other party in a financial transaction may default on their contractual obligation, requiring the bank to find a replacement contract.

The Risk That a Customer with Whom the Bank Has