The risk that a debt security's price will fall, subjecting the investor to a potential capital loss is
A. credit risk.
B. market risk.
C. currency risk.
D. liquidity risk.
E. political risk.
Ans: B. market risk.
Business
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The following journal entry is necessary upon discovery of a "NSF" check during a bank reconciliation:
Select one: A. Accounts receivable Cash B. Not Sufficient Funds Expense Cash C. Miscellaneous Expense Cash D. No entry is necessary because the bank makes the entry.
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Risks can be quantified by multiplying the likelihood a failure will occur by the severity of the failure
Indicate whether the statement is true or false
Business