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Card 3 / 40: Credit risk is the risk
A)
that the promised cash flows from loans and securities held FI's may be defaulted on
B)
of default for borrowing firm associated with the specific types of project risk taken by that firm
C)
incurred by an FI when the maturities of its assets and liabilities are mismatched and interest rates are volatile
Answer:
A) that the promised cash flows from loans and securities held FI's may be defaulted on
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