10-39 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

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Market risk is the risk associated with the uncertainty of an FI's earnings on its trading portfolio caused by changes, and particularly extreme changes, in market conditions. Interest rate risk refers to the risk of losses due to interest rate changes, credit risk refers to the risk of losses due to borrower default, sovereign risk refers to the risk of losses due to political or economic instability in a foreign country, and default risk refers to the risk of losses due to a borrower's failure to repay a loan.

10-39 Which Term Defines the Risk Related to the Uncertainty