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what is risk when pervasive, economy-wide factors cause widespread credit risk? a. off-balance-sheet risk b. reinvestment...

what is risk when pervasive, economy-wide factors cause widespread credit risk?

a. off-balance-sheet risk

b. reinvestment risk

c. systematic risk

d. country risk

e. firm specific risk

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Homework Answers

Answer #1

As per details given in the information-
Correct Answer is Option C
Systematic Risk - It is a overall risk , Risk can arise because of multiple factors- Such as economy, interest rate etc.
Credit risk- Credit risk is the risk of default on debt, arrising due to non paymnet of required payments.
The relation between macroeconomics indicator on credit risk discussed by stability of banking sector. Macroeconomis condition are the main sources of systematic risk depends upon the growth or decline of loss of default.

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