General Studies · Banking and Financial Services
Credit risk arises from the potential that a borrower or counterparty will fail to meet its obligations. Which of the following situations does NOT result in credit risk? (A) Principal and/or interest amount may not be repaid in the case of direct lending. (B) In case of guarantees or letters of credit, funds may not be forthcoming from the constituents upon crystallization of the liability. (C) Funds/Securities settlement may not be effected in a securities trading business. (D) Providing information to determine the adequacy of loan loss provision. Choose the correct answer from the options given below:
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1D only✓
- 2B and C only
- 3A, C and D only
- 4A, B and C only
Correct answer
D only
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