CFA Practice Question

There are 221 practice questions for this study session.

CFA Practice Question

Which of the following is(are) not (a) financial risk(s)?

I. Liquidity risk
II. Solvency risk
III. Settlement risk
Correct Answer: II and III

Both solvency risk and settlement risk are non-financial risks.

Liquidity risk is the risk that, as a result of degradation in market conditions or lack of market participants, one will be unable to sell an asset without lowering the price to less than the fundamental value.

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