The credit risk a bank faces is the risk resulting specifically from:

Name: The credit risk a bank faces is the risk resulting specifically from:
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Question

Quizplus · Accepted Answer

Credit risk refers to the risk of default or non-repayment of loans or debts by borrowers. It is not directly linked to the economy entering a recession, interest rates falling, or a decrease in deposits. Therefore, option C is the correct answer as it refers to the non-repayment of loans by borrowers.

The Credit Risk a Bank Faces Is the Risk Resulting