Which term defines the risk related to the uncertainty of an FI's earnings on its trading portfolio caused by changes,and particularly extreme changes in market conditions?

Question

Quizplus · Accepted Answer

Market risk is the risk related to the uncertainty of an FI's earnings on its trading portfolio caused by changes, particularly extreme changes, in market conditions. Interest rate risk is the risk of loss due to changes in interest rates, credit risk is the risk of loss due to a borrower's inability to repay a loan, and sovereign risk is the risk associated with investments in foreign countries that may experience political or economic instability.

Which Term Defines the Risk Related to the Uncertainty of an FI's