The risk arises from trading of assets because of change in asset prices and exchange rates is classified as ____________?
Correct answer: C. market risk
- A. asset risk
- B. trade risk
- C. market risk
- D. exchange risk
Explanation
Market risk is the possibility of loss caused by changes in market prices, including asset prices, interest rates, and exchange rates. Exchange risk is narrower because it relates specifically to currency movements.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The type of institutions that write securities, engage in brokerage and security trading are considered as _____________?
The situation in which the claims by financial institutions is more considerable for investors then the claims issued by corporations, is classified as _____________?
The bonds which are denominated in dollars and are issued in canters of London and Luxemburg are classified as _____________?
The additional debt instruments or equity instruments of publicly traded firm are included in the markets classified as ____________?
The institutions deal in financial functions and protects corporations and individuals against accidents, theft and death are considered as ____________?
The type of security backed by mortgage cash flows and are packed by financial instruments is classified as _____________?