Market Risk
Credit Risk
Operational Risk
Forex Risk
Answer is Right!
Answer is Wrong!
The correct answer is B. Credit risk is the risk of default on a debt that may arise from a borrower failing to make required payments.
Market risk is the risk of loss due to changes in market prices, such as interest rates, exchange rates, or commodity prices.
Operational risk is the risk of loss due to errors, fraud, or other problems with a company’s operations.
Forex risk is the risk of loss due to changes in exchange rates.
Credit risk is a major concern for lenders, as it can lead to losses if
borrowers default on their loans. Lenders use a variety of methods to assess credit risk, such as checking a borrower’s credit score and history.Credit risk can be reduced by taking steps to improve a borrower’s creditworthiness, such as paying bills on time and keeping debt levels low.