7-79 The risk that borrowers are unable to repay their loans on time is

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Credit risk refers to the risk of a borrower defaulting on their debt obligations, which includes the risk that they are unable to repay their loans on time. Sovereign risk refers to the risk of a government defaulting on its debt obligations, currency risk refers to the risk of exchange rate fluctuations, liquidity risk refers to the risk of not being able to sell an asset quickly enough to meet financial obligations, and interest rate risk refers to the risk of changes in interest rates affecting financial performance.

7-79 the Risk That Borrowers Are Unable to Repay Their