Question

    The risk that loss may arise on account of trading in

    SLR and other securities by a bank is classified as ______
    A credit risk Correct Answer Incorrect Answer
    B investment fluctuation risk Correct Answer Incorrect Answer
    C operational risk Correct Answer Incorrect Answer
    D market risk Correct Answer Incorrect Answer
    E None of the above Correct Answer Incorrect Answer

    Solution

    Market risk deals with changes in market prices and interest rates which results in investment losses. Under market risk we have Equity risk, interest rate risk, Foreign exchange risk and commodity price risk.

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