New Enroll here to Join NaBFID Analyst Into Class on May 6

    Question

    If an individual is unable to pay back the overdraft

    taken by him, which of the following risk is the bank facing?
    A Credit Risk Correct Answer Incorrect Answer
    B Market 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

    Relevant for Exams: