Question
Which of the following risk is the bank facing when an
individual is unable to pay back the overdraft taken by him?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
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