Multiple Choice
Which of the following statements is false?
A) Default risk is the risk that the borrower is willing but unable to fulfil the terms promised under loan contract.
B) Default risk is the risk that the borrower refinances the loan before maturity.
C) Default risk is the risk that the borrower is able but unwilling to fulfil the terms promised under loan contract.
D) Default risk is the risk that the borrower is unable and unwilling to fulfil the terms promised under loan contract.
Correct Answer:
Verified
Correct Answer:
Verified
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