The form of risk to the lender associated with a borrower not paying their debt is called
A)market risk.
B)default risk.
C)overall risk.
D)complete risk.

Question

Quizplus · Accepted Answer

Default risk refers to the risk that a borrower may default on their loan and not repay the borrowed amount. This poses a financial risk to the lender as they may not be able to recover the amount lent. Market risk, overall risk, and complete risk are not directly related to borrower default risk.

The Form of Risk to the Lender Associated with a Borrower