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Which of the following statements is (are) TRUE for credit risk? I: An improving economy would result in lower credit risk, reflected in lower credit

Which of the following statements is (are) TRUE for credit risk?

I: An improving economy would result in lower credit risk, reflected in lower credit spreads.

II: Credit risk covers default risk, downgrade risk and change in credit spread.

A: I only

B: II only

C: I & II

D: None

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