Examlex
It is good practice to ____________ the units and the __________ represented by objective function.
Principal Market
The market with the greatest volume and level of activity for the asset.
Active Market
A market in which transactions for the asset or liability take place with sufficient frequency and volume to provide pricing information on an ongoing basis.
Non-performance Risk
Non-performance risk is the risk that a counterparty will not fulfil their contractual obligations, affecting the valuation of financial instruments.
Credit Risk
The possibility that a lender may not receive the owed principal and interest, leading to a loss.
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