问题如下：
Which of the following statements is most accurate regarding risks incurred by retail lenders?
选项：
A. Reputation risk is more of a concern
for the borrower rather than the lender.
B. Business risk relates to the
day-to-day operational risks of the business.
C. Credit risk relates to the potential for
a lender to default on their obligation.
D. Refinancing a mortgage when rates
decrease is an example of asset valuation risk.
解释：
D Refinancing a mortgage is considered a prepayment risk to the lender, which is a component of asset valuation risk. When rates decrease, borrowers are more likely to refinance their existing (higher rate) mortgage into a lower rate obligation. The lender then earns less in interest on the debt obligation than they would have previously. Reputation risk is primarily a concern for the lender. Business risk relates to strategic risks tied to new products and volume, while credit risk is the risk that the borrower (rather than the lender) will default.
A的意思是reputation对于borrower来说更重要么？我记得前面几章有讲过判断一个borrower好不好有时候也会考虑他的reputation，这样的话A也是对的吧？讲义129页讲到的reputation risk preserve a reputation for customer，这里的customer就是borrower吧？
