Risk that is related to the uncertainty about interest rate movements is called
A)default risk.
B)interest-rate risk.
C)the problem of moral hazard.
D)security risk.

Question

Quizplus · Accepted Answer

Interest rate risk is specifically related to the uncertainty about interest rate movements and how they will affect the value or performance of a particular investment or portfolio. Default risk refers to the risk that a borrower will not be able to pay back their debts, moral hazard is the risk that a party will take risks because they know someone else will bear the cost, and security risk refers to the physical security of an asset or property.

Risk That Is Related to the Uncertainty About Interest Rate