What Type of Risk Focuses Upon Future Contingencies

question 9

Multiple Choice

What type of risk focuses upon future contingencies?

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

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Definitions:

Moral Requirement

An ethical obligation or duty that individuals are expected to follow based on moral principles or societal norms.

General Happiness

A state of overall well-being and contentment, often considered as a goal of human life.

Utilitarianism

A theory in normative ethics holding that the best moral action is the one that maximizes utility, usually defined as that which produces the greatest well-being of the greatest number of people.

Categorical Imperative

A central philosophical concept in the deontological moral philosophy of Immanuel Kant, which asserts that an action is morally right if it can be universally applied as a principle.