Some investments are subject to credit risk This means that the borrowers may not repay on a timely basis. True False

Question

Some investments are subject to credit risk This means that the borrowers may not repay on a timely basis. True False

Answer 1

The statement is true. Credit risk, also known as default risk, is the risk that borrowers may not repay on a timely basis. This is a common risk in investments, especially in bonds and loans. The risk is higher for borrowers with lower credit ratings, as they are considered more likely to default on their obligations.

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Some investments are subject to credit risk This means that the borrowers may not repay on a timely basis. True False

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