If a future credit crunch is possible,a loan commitment may expose the FI to
A)credit risk.
B)interest rate risk.
C)sovereign country risk.
D)funding risk.

Name: If a future credit crunch is possible,a loan commitment may expose the FI to A)credit risk. B)interest rate risk. C)sovereign country risk. D)funding risk.
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Question

Quizplus · Accepted Answer

A loan commitment during a credit crunch may expose the financial institution (FI) to funding risk, as it may struggle to secure the necessary funds to fulfill its commitments.

If a Future Credit Crunch Is Possible,a Loan Commitment May