________ is the risk to a financial institution's economic well-being that results from an adverse movement in the market price of assets it owns.

Question

Quizplus · Accepted Answer

Market risk refers to the potential loss that an institution may suffer due to market fluctuations i.e. change in interest rates, currency exchange rates, commodity prices, etc. The risk arises because the market value of an organization's assets can be negatively impacted by such fluctuations, leading to financial losses.

________ Is the Risk to a Financial Institution's Economic Well-Being