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zmey [24]
3 years ago
14

Against your better judgment, you lend $100 to your cousin Manny, who has a reputation for failing to pay back loans. What kind

of risk are you taking? A. a liquidity risk B. a time risk C. an inflation rate risk D. a credit risk
History
2 answers:
mariarad [96]3 years ago
6 0

Answer:

D. a credit risk

Explanation:

It can be found in <em>"Principles for the Management of Credit Risk – final document"</em> that credit risk is defined as <em>"the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed terms"</em>. In other words, is the risk of lending money and not receiving it back.

Leto [7]3 years ago
6 0

The correct answer is D. Credit Risk

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