ECONOMICS
TECHNOLOGY
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Greater financial freedom
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Less stress over finances
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Credit rating adversely affected, not being able to afford loan payment, stress and other health related issues
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There is no risks associated with debt
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Detailed explanation-1: -The stress from debt can lead to mild to severe health problems including ulcers, migraines, depression, and even heart attacks. 2 The deeper you get into debt, the more likely it is that you will face health complications.
Detailed explanation-2: -Financial institutions face different types of credit risks-default risk, concentration risk, country risk, downgrade risk, and institutional risk.
Detailed explanation-3: -Credit risk is the risk to earnings or capital arising from an obligor’s failure to meet the terms of any contract with the bank or otherwise fail to perform as agreed. Credit risk is found in all activities where success depends on counterparty, issuer, or borrower performance.
Detailed explanation-4: -Credit spread risk, generated by the shifting difference between interest rates and the risk-free return rate. Default risk, occurring when borrowers become unable to make contractual payments. Downgrade risk, generated by dropping issuer risk ratings. More items •14-Feb-2021