The possibility that a bank's loan customers might not repay their loans is known as

Question

Quizplus · Accepted Answer

Default risk refers to the possibility that a borrower may not be able to repay their loan or meet their obligations under a loan agreement. This type of risk is particularly relevant to banks and other financial institutions that lend money to individuals and businesses. Withdrawal risk refers to the possibility that depositors may withdraw their funds from a bank or financial institution, while interest-rate risk refers to the possibility of losses due to changes in interest rates. Foreign-exchange risk refers to the possibility of losses due to fluctuations in currency exchange rates.

The Possibility That a Bank's Loan Customers Might Not Repay