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Commerce · Q108

Financial Management

Graduate and Post Graduate · Commerce · question 108

Q108

If interest rates rose, you would expect ____________ to also rise.

A.
business risk
B.
financial risk
C.
liquidity risk
Answer
D.
inflation risk

Answer: Option C

Solution

Answer: Option C
Solution:
If interest rates rises, you would expect liquidity risk to also rise. Liquidity is the ability of a firm, company, or even an individual to pay its debts without suffering catastrophic losses.