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      Question

      The bank bought a 5 year G-Sec with YTM of 7.6% and

      plans to sell them in 2 weeks. The bond could not be sold within 2 weeks due to over sight and as a result the bank had to incur loss. This loss would be the result of ________
      A Market risk Correct Answer Incorrect Answer
      B Gap risk Correct Answer Incorrect Answer
      C Operational risk Correct Answer Incorrect Answer
      D Funding risk Correct Answer Incorrect Answer
      E Interest rate risk Correct Answer Incorrect Answer

      Solution

      Here the risk is due to human error of oversight and is therefore an operational risk.

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