Market Risk Is Defined as the Risk

question 3

Multiple Choice

Market risk is defined as the risk:

• A)incurred by granting loans to companies that do not hold a large market share
• B)incurred in the trading of assets and liabilities due to changes in interest rates, exchange rates and other asset prices
• C)that a sudden surge in liability withdrawals may require FIs to liquidate assets at less than fair market prices
• D)that an FI loses market share

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Definitions:

Maslow Hierarchy

A theory of psychological health predicated on fulfilling innate human needs in priority, culminating in self-actualization.

Maslow Hierarchy

A theory in psychology proposing that people are motivated by five basic categories of needs: physiological, safety, love, esteem, and self-actualization.

Level Of Needs

Refers to the hierarchy of human needs ranging from basic physiological ones to self-fulfillment, as per Abraham Maslow's theory.

Self-Actualization

The realization or fulfillment of one's talents and potentialities, often considered as the highest need in Maslow's hierarchy of needs.