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Latest Activity: May 20, 2019
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Understanding "Credit Risk"
Closing Date: Wednesday, May 22, 2019
Hassan Ali is a student of "Credit and Risk Management" in a business study program. During the semester, in a class discussion, it has been discussed among the students, that if the borrower paid the due amount on time, then there is no risk of loss in money for the lender. Therefore, receiving payment on time may be a powerful tool against credit risk. During this discussion, their resource person Mr. Alam was also in the class, and after hearing the views on the topic from the students, Mr. Alam believed that students are making mistake, and there are situations in which lender may suffer loss in money, even if the borrower paid the dues on time.
At the end of the class, students have asked the resource person to guide them about the situations in which lender losses money even if the borrower paid the amount on due time. Mr. Alam said “It is your assignment to find the aforementioned situations. I will let you know about the answer but in the next class”. Meanwhile, it will be your assignment to find the above-mentioned situations.
Now being the student of “Credit and Risk Management”, you are also required to give your opinion on the following class questions.
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