Financial Risk Management Multiple Choice Questions with Answers – PDF Download

MCQ 1: The type of risk in which payments are interrupted by the intervention of foreign governments is considered as:

1. channel risk
2. globalization risk
3. state risk
4. country risk

MCQ 2: The risk arises from trading of assets because of change in asset prices and exchange rates is classified as:

1. asset risk
2. trade risk
3. market risk
4. exchange risk

MCQ 3: The risk faced by financial institutions in which advancement of technology does not produce savings in cost is classified as:

1. savings risk
2. advance risk
3. cost risk
4. technology risk

MCQ 4: The risk which arises all the activities from contingent liabilities and assets is considered as:

1. off balance sheet risk
2. income statement risk
3. balance of trade risk
4. balance of payment risk

MCQ 5: When maturities of liabilities and assets are mismatched and risk incurred by financial intermediaries then this risk is classified as:

1. interest rate risk
2. channel rate risk
3. economic risk
4. issuance risk