The term "financial risk" refers to the probability of interest rates changing.

Question

Quizplus · Accepted Answer

Financial risk encompasses a broader range of possibilities, including market volatility, credit default, and other factors that can affect the value of investments or the ability of an individual or institution to meet their financial obligations. Interest rate changes are one potential source of financial risk, but they do not encompass the entirety of the concept.

The Term "Financial Risk" Refers to the Probability of Interest