Business risk is the risk that a bank may experience a cash shortage and will have to sell some of its investments securities.

Question

Quizplus · Accepted Answer

Business risk refers to the risk associated with the operations and financial performance of a business, such as market competition, changes in consumer preferences, or economic downturns, which may negatively impact the bank's revenue and profitability. The risk of selling investment securities to address a cash shortage is known as liquidity risk.

Business Risk Is the Risk That a Bank May Experience