CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

An example of a non-financial risk is ______.
A. credit risk
B. solvency risk
C. liquidity risk
Explanation: Solvency risk is the risk that an institution cannot meet maturing obligations as they come due for full value (even if it may be able to settle at some unspecified time in the future) even after disposal of its assets.

Credit risk is most simply defined as the potential that a bank borrower or counterparty will fail to meet its obligations in accordance with agreed-upon terms.

Liquidity risk refers to the risk that involves the disposal or selling of assets.

User Contributed Comments 1

User Comment
kek01 How is this non-financial?
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