New RBI Grade B 2025 Notification will come Soon! Enroll Here

    Question

    Which of the following statements is not

    correct?
    A Large variation in net cash flows happens in the business with higher risk. Correct Answer Incorrect Answer
    B Capital requirement would be lesser in higher risk business Correct Answer Incorrect Answer
    C The profit potential would be lower in a business with a lower risk Correct Answer Incorrect Answer
    D Lower the variation in net cash flow, lower the risk Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    In case of higher risk, the capital requirement would be higher to provide for higher possibility of loss.

    Practice Next

    Relevant for Exams: