Market risk is present whenever an FI takes an open position and prices change in a direction opposite to that expected.

Name: Market risk is present whenever an FI takes an open position and prices change in a direction opposite to that expected.
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Question

Quizplus · Accepted Answer

Market risk is the risk of loss arising from adverse changes in the market values of financial instruments. It is indeed present when an FI takes an open position and prices change in a direction opposite to that expected. Therefore, the statement is true.

Market Risk Is Present Whenever an FI Takes an Open