Q108
If interest rates rose, you would expect ____________ to also rise.
A.
business risk
B.
financial risk
C.
liquidity risk
AnswerD.
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.