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    Question

    When a Bank sanctions a loan to a large borrower, which

    of the following risks it may not face?
    A Liquidity Risk Correct Answer Incorrect Answer
    B Market Risk Correct Answer Incorrect Answer
    C Credit Risk Correct Answer Incorrect Answer
    D Operational Risk Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Market risk is associated with change in the market value of assets or liabilities. The loan extended is not a marketable security being affected by market prices.

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