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Basic Question 1 of 20

Credit risk refers to potential loss of ______ stemming from a borrower's failure to meet a contractual obligation.

A. principal
B. interest
C. both principal and interest

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Lina

Lina

Learning Outcome Statements

describe credit risk and its components, probability of default and loss given default

CFA® 2025 Level I Curriculum, Volume 4, Module 14.