The risk in which the borrowing organisation is unable to repay the debt and which leads to the investor losing all the invested money is called the ___________.
Answers
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Explanation:
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Answer:
Financial Risks for Businesses
Credit risk— also known as default risk—is the danger associated with borrowing money. Should the borrower become unable to repay the loan, they will default. Investors affected by credit risk suffer from decreased income from loan repayments, as well as lost principal and interest.
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