Question

    If an individual is unable to pay back the overdraft

    taken by him it is known as
    A Market Risk Correct Answer Incorrect Answer
    B Credit Risk Correct Answer Incorrect Answer
    C Interest Rate Risk Correct Answer Incorrect Answer
    D Operational Risk Correct Answer Incorrect Answer
    E Liquidity Risk Correct Answer Incorrect Answer

    Solution

          Credit Risk is the risk of non-recovery of loan or risk of default.      Market risk – risk from change in market value of assets Interest rate risk – risk from change in interest rate Liquidity risk – risk of not having enough liquid assets to meet short term obligations Operational risk - from inadequate or failed procedures, systems or policies, employee    errors, systems failures, fraud or other criminal activity, any event that disrupts business processes

    Practice Next
    More Financial Management Questions

    Relevant for Exams:

    ask-question