Question

    Which of the following is/are the basic component(s) of

    financial risk?
    A cost and availability of debt capital Correct Answer Incorrect Answer
    B meeting cash flow needs Correct Answer Incorrect Answer
    C absorbing shocks of short term financial nature Correct Answer Incorrect Answer
    D All of the above Correct Answer Incorrect Answer
    E Only a and c Correct Answer Incorrect Answer

    Solution

    The basic components of financial risk include all of the above, It not only includes credit related risks but also funding and liquidity risk (a and c)

    Practice Next

    Relevant for Exams: