If interest rates rose, you would expect ____________ to also rise.
A. business risk
B. financial risk
C. liquidity risk
D. inflation risk
Answer: Option C
Solution (By Examveda Team)
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.This Question Belongs to Commerce >> Financial Management
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Investment is the _______________.
A. net additions made to the nation’s capital stocks
B. person’s commitment to buy a flat or house
C. employment of funds on assets to earn returns
D. employment of funds on goods and services that are used in production process
Financial Management is mainly concerned with ______________.
A. All aspects of acquiring and utilizing financial resources for firms activities
B. Arrangement of funds
C. Efficient Management of every business
D. Profit maximization
The primary goal of the financial management is ____________.
A. to maximize the return
B. to minimize the risk
C. to maximize the wealth of owners
D. to maximize profit
In his traditional role the finance manager is responsible for ___________.
A. proper utilisation of funds
B. arrangement of financial resources
C. acquiring capital assets of the organization
D. efficient management of capital
The correct answer is B. financial risk.
Here's why:
When interest rates rise, the cost of borrowing money increases. This directly impacts a company's financial risk (specifically, its interest rate risk or the risk associated with its capital structure).