The Risks Arising from Financial Instruments Are Typically

question 62

True/False

The risks arising from financial instruments are typically:
A. Credit risk, fair value risk and market risk.
B. Credit risk, liquidity risk and financial risk.
C. Inherent risk, liquidity risk and market risk.
D. Credit risk, liquidity risk and audit risk.
E. Credit risk, liquidity risk and market risk.

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Definitions:

Trade Credit

A form of credit extended by suppliers allowing customers to purchase goods or services and pay for them at a later date.

Payment Policy

Guidelines or procedures set by a company to manage how and when payments are made and received.

Economic Condition

The state of the economy at a given time, including factors such as GDP growth rates, unemployment rates, and inflation rates.

Capacity

The maximum level of output that a company can sustain to produce in a given period under normal conditions.