Which of the following risks are considered market risks?
A) interest rate, currency, equity and commodity risk
B) interest rate, currency, equity and default risk
C) interest rate, equity, liquidity and default risk
D) legal, reputation and regulatory risk

Question

Quizplus · Accepted Answer

Market risk refers to the risk of changes in market prices or rates, such as interest rate risk, currency risk, equity risk, and commodity risk. Option A only includes market risks. Option B includes default risk which is classified as credit risk. Option C includes liquidity risk which is categorized as non-market risk. Option D includes legal, reputation, and regulatory risk which are categorized as non-market risks.

Which of the Following Risks Are Considered Market Risks