GENERAL KNOWLEDGE

GK

BANKING AWARENESS AND SEBI

Please wait while the activity loads.
If this activity does not load, try refreshing your browser. Also, this page requires javascript. Please visit using a browser with javascript enabled.

If loading fails, click here to try again

Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

Which one of the following is known as the real return to the investor getting reduced due to sudden rise in the prices of the commodities?

A	Cost risk
B	Market risk
C	Demand risk
D	Systemic risk

Explanation:

Detailed explanation-1: -Hence, the real return to the investor sometimes gets reduced due to a sudden rise in the prices of the commodities. This phenomenon in the financial market is known as market risk.

Detailed explanation-2: -Market price risks consist of the risks to the value of positions due to changes in market parameters including interest rates, volatility and exchange rates among others.

Detailed explanation-3: -Market risk is the risk that changes in the market prices of financial assets will adversely affect the value of a bank’s portfolios.

Detailed explanation-4: -Market risk is the risk of losses on financial investments caused by adverse price movements. Examples of market risk are: changes in equity prices or commodity prices, interest rate moves or foreign exchange fluctuations.

There is 1 question to complete.