Vidyalelo
Management · Q674

International Finance and Treasury

Graduate and Post Graduate · Management · question 674

Q674

More instability in currency is called as

A.
country risk
B.
financial risk
C.
currency risk
Answer
D.
liquidity risk

Answer: Option C

Solution

Answer: Option C
Solution:
More instability in currency is called as currency risk. Currency Risk, sometimes referred to as exchange rate risk, is the possibility that currency depreciation will negatively affect the value of one's assets, investments, and their related interest and dividend payment streams, especially those securities denominated in foreign currency.