nerdexam
SOFE

AFE · Question #162

The risk that the obligation will not be fulfilled and affects the value at which the liability is transferred is known as:

The correct answer is B. nonperformance risk. See the full explanation below for the reasoning.

Question

The risk that the obligation will not be fulfilled and affects the value at which the liability is transferred is known as:

Options

  • Aperformance risk
  • Bnonperformance risk
  • Chypothetical risk
  • Drelocation risk

How the community answered

(39 responses)
  • A
    3% (1)
  • B
    77% (30)
  • C
    13% (5)
  • D
    8% (3)

Community Discussion

No community discussion yet for this question.

Full AFE Practice