Vidyalelo
Management · Q203

International Finance and Treasury

Graduate and Post Graduate · Management · question 203

Q203

Risk which arises all activities from contingent liabilities and assets is considered as

A.
off balance sheet risk
Answer
B.
income statement risk
C.
balance of trade risk
D.
balance of payment risk

Answer: Option A

Solution

Answer: Option A
Solution:
Risk which arises all activities from contingent liabilities and assets is considered as off balance sheet risk. Off balance sheet refers to items that are effectively assets or liabilities of a company but do not appear on the company's balance sheet.