📢 Too many exams? Don’t know which one suits you best? Book Your Free Expert 👉 call Now!
  • google app store apple app store
    • ✖

      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
      More Financial Management Questions

      Relevant for Exams:

      ask-question