Regulation limits FI investment in non-investment grade bonds (rated below Baa or non-rated). What kind of risk is this designed to limit?

A. Liquidity risk.
B. Interest rate risk
C. Credit risk.
D. Foreign exchange rate risk.
E. Off-balance sheet risk.

Ans: C. Credit risk.

Business

You might also like to view...

Describe the 4 Ps of the marketing mix, how they are used by management, and how they relate to each other

What will be an ideal response?

Business

A firm would be most likely to use backward invention in which of the following situations?

A) when it needs to offer a less complex product in a foreign market than it sells elsewhere B) when it has decided to rely on a straight extension strategy C) when it first markets a product internationally D) when it participates in a free trade zone E) when it relies on the practice of dumping

Business