RR1E Practice Test

1Multiple ChoiceSelect all that apply

Which of the following are recognized sources of retail credit risk for a bank? (Choose two.)

A.Default risk arising from a retail borrower's failure to meet contractual repayment terms
B.Settlement risk arising from a foreign-exchange trade between two wholesale counterparties
C.Recovery risk arising from uncertainty about the amount that can be collected after default
D.Liquidity risk arising from the bank's inability to roll overnight funding in interbank markets

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