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ACI

3I0-012 · Question #260

You are a sales person in a bank and are about to sell a structured note to a non-professional customer. Before finalizing the transaction you remember to double-check the customer's charter. You…

The correct answer is C. legal risk. See the full explanation below for the reasoning.

Question

You are a sales person in a bank and are about to sell a structured note to a non-professional customer. Before finalizing the transaction you remember to double-check the customer's charter. You learn that the customer is not allowed to invest in structured products. The risk you have avoided is most likely to be classified as:

Options

  • Acredit risk
  • Bliquidity risk
  • Clegal risk
  • Drefinancing risk

How the community answered

(48 responses)
  • A
    2% (1)
  • B
    6% (3)
  • C
    77% (37)
  • D
    15% (7)

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Full 3I0-012 Practice