1. Which of the following is NOT a source of financial risk? A. Commodity price fluctuations....

Question

Question

1. Which of the following is NOT a source of financial risk?

A. Commodity price fluctuations.

B. Equity price fluctuations.

C. Exchange rate fluctuations.

D. Liquidity fluctuations.

E. Interest rate fluctuations

business finance

Answer 1

✔ Recommended Answer

Answer #1

Price Fluctuations are a source of financial risk.

Therefore Options A B C and E are sources of financial risk

While option D Liquidity fluctuation is source of liquidity risk and not financial risk.

Therefore Answer is option D. Liquidity Fluctuations.

Answer 2

Answer #2

Credit terms

Answer 3

Similar Homework Help Questions

1. Which of the following is NOT a source of financial risk? A. Commodity price fluctuations....

1. Which of the following is NOT a source of financial risk? A. Commodity price fluctuations. B. Equity price fluctuations. C. Exchange rate fluctuations. D. Liquidity fluctuations. E. Interest rate fluctuations. 2. When we draw a graph showing that the value of Air Canada decreases as the price of oil increases, this is an example of a ________. A. Risk profile. B. Risk frontier. C. Risk map. D. Volatility map. E. Volatility index. 3. The payoff profile resulting from a...
Which of the followings is a major type of risk? Select one: a. Equity Price Risk...

Which of the followings is a major type of risk? Select one: a. Equity Price Risk b. Operational Risk c. Foreign Exchange Risk d. Interest Rate Risk
Which of the following risk is not a determinant of interest rate in mortgage lending? ...

Which of the following risk is not a determinant of interest rate in mortgage lending? a. Default risk b. Liquidity risk c. Currency exchange risk d. Interest rate risk.

The commodity most important to the French peoples before the revolution, and whose price fluctuations can...

The commodity most important to the French peoples before the revolution, and whose price fluctuations can be directly correlated to general discontent in the Parisian population was: a. Butter b. Beer c. Bread d. Cheese
Which of the following is considered a part of financial risk? Selected Answer: Answers: A. Demand...

Which of the following is considered a part of financial risk? Selected Answer: Answers: A. Demand variability B. Sales price variability C. The extent to which operating costs are fixed D. Changes in interest rates on debt E. The ability to change prices as costs change Which of the following is an example of business risk? Selected Answer: D. Currency risk Answers: A. Default risk B. Prepayment risk C. Strategic risk D. Currency risk E. Equity risk Which of the...
Financial futures are available to protect against all of the following except: a., interest rate risk,...

Financial futures are available to protect against all of the following except: a., interest rate risk, b., level of equity prices, c., currency swap risk, d., exchange rate risk?

Financial risk forms : • Market value risk • interest rate risk, • exchange prices, • Asset prices price • default risk...

Financial risk forms : • Market value risk • interest rate risk, • exchange prices, • Asset prices price • default risk • Risk of liquidity Non-Financial risk forms: • Business Risk( chances of failure of business) • Operational Risk (misconduct,fraud etc) • Accounting risk (changes in GAAP/IFRS and comparability issues, managed earnings, etc.) • Legal and Regulation risk • Tax risk • environment risk • Strategic risk Elaborate on each of the risk factors with examples
Risk

which of the following is not a source of financial risk ? a) exchange rate b) interest rates c) market shares d) credit terms
Which of the following is a reason for batching? A. Price fluctuations B. Demand fluctuations C....

Which of the following is a reason for batching? A. Price fluctuations B. Demand fluctuations C. Fixed costs associated with starting the process D. Variable costs associated with starting the process

Which of the following is not true? a. Economic exposure is the degree to which a...

Which of the following is not true? a. Economic exposure is the degree to which a firm's present value of future cash flows can be influenced by exchange rate fluctuations. b. Translation exposure is the exposure of an MNC's consolidated financial statements to exchange rate fluctuations. c. Economic exposure includes transaction exposure d. Transaction exposure is the degree to which the value of future cash transactions can be affected by exchange rate fluctuations. e. All of the these choices are...