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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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