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    Financial Institution Management
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    Exam 18: Capital Management and Adequacy
  5. Question
    Counterparty Credit Risk Is the Risk That the Other Side
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Counterparty Credit Risk Is the Risk That the Other Side

Question 42

Question 42

True/False

Counterparty credit risk is the risk that the other side of a contract will default on payment obligation, whereby 'the other side' is always the FI.

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