General Studies · Economics

Credit risk in the banking sector primarily arises from which of the following?

Verified Solution4 OptionsUpdated: October 2026👁️1 View

1Currency volatility
2System failure in payment systems
3Failure of a counterparty or borrower to meet obligations✓
4Adverse movements in interest rates

Correct answer

Failure of a counterparty or borrower to meet obligations

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Credit risk in the banking sector primarily arises from which of the following?

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Credit risk in the banking sector primarily arises from which of the following?

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