Question

​________ is the possibility that the​ borrower's creditworthiness is reclassified by the lender at the time of renewing credit.​ ________ is the risk of changes in interest rates charged at the time a financial contract rate is set.

Answer 1

Credit Risk ; Repricing Risk.

Explanation:

Credit Risk is the possibility that the​ borrower's creditworthiness is reclassified by the lender at the time of renewing credit.​ These risks occur by loans or inter bank transactions. There is a risk of non payment on the debt amount, when the borrower fails to make payments.

Repricing Risk is the risk of changes in interest rates charged at the time a financial contract rate is set.