Banking Awareness - Basics Of Banking & Banking Terminology
Which banking risk arises when borrowers are unable or unwilling to repay their loans?
Which banking risk arises when borrowers are unable or unwilling to repay their loans?
easy Q1 of 15
Step-by-Step Solution
Step 1: Identify the cause of loss
The issue is non-repayment by borrowers.Step 2: Match with risk definition
Credit risk relates to the possibility of borrower default.Final Answer:
Credit risk → Option AQuick Check:
Loan default directly leads to credit risk ✅
Quick Trick: Borrower default = Credit risk.
Common Mistakes:
- Confusing default risk with liquidity risk.
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