Economics B A-Level
Credit risk
What Credit risk means in Economics B A-Level, as defined for Pearson Edexcel.
Definition of Credit risk
Check what you remember
Read the wording for your board, then hide it and explain Credit risk in your own words. Rough notes are fine. This is a self-check, with no mark or grade.
Reference: Pearson Edexcel
The likelihood that a borrower will fail to meet debt obligations, also known as default risk.
Topics that use Credit risk
- The role of the financial sector (Pearson Edexcel A-Level)
Related terms
- Capital allocation
- Credit rating agencies
- Financial intermediation
- International trade
- Liquidity
- Medium of exchange
- Payment systems
- Saving and borrowing
Using Credit risk in the exam
Check the command word and mark scheme for your exact question. After comparing your explanation with the reference, use the term in an answer on the linked topic. This practice does not predict an exam mark.
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