Liquidity risk is:
A. is risk investments bankers face
B. is lower for small OTC
C. is risk associated with secondary market transactions
D. increases whenever interest rates increases
Answer: Option C
Solution (By Examveda Team)
Liquidity risk is risk associated with secondary market transactions. Liquidity is the ability of a firm, company, or even an individual to pay its debts without suffering catastrophic losses. Conversely, liquidity risk stems from the lack of marketability of an investment that can't be bought or sold quickly enough to prevent or minimize a loss.This Question Belongs to Management >> International Finance And Treasury
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