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3I0-013 · Question #220

The risk that an institution will experience a loss on a trade or a position due to an adverse exchange/interest rate movement is best described as:

The correct answer is D. Credit risk. See the full explanation below for the reasoning.

Question

The risk that an institution will experience a loss on a trade or a position due to an adverse exchange/interest rate movement is best described as:

Options

  • AOperational risk
  • BMarket risk
  • CSystemic risk
  • DCredit risk

How the community answered

(24 responses)
  • A
    8% (2)
  • B
    4% (1)
  • C
    4% (1)
  • D
    83% (20)

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Full 3I0-013 Practice