Multiple Choice
Which of the following statements is not correct concerning credit risk?
A) Credit risk is the risk of counterparty default and is usually the single largest risk facing an FI.
B) Credit risk occurs when borrowers are unable to repay their loans on time.
C) Credit risk decreases when FIs concentrate their loan exposures on a few counterparties and APRA requires that FIs have appropriate policies to manage such risk.
D) Credit risk increases when FIs concentrate their loan exposures on a few counterparties.
Correct Answer:
Verified
Correct Answer:
Verified
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