Risk which arises from insufficient capital available to balance sudden decrease in assets value is classified as?

Question

Risk which arises from insufficient capital available to balance sudden decrease in assets value is classified as?

insolvency risk
solvency risk
balanced risk
unbalanced risk

LohaHridoy

6 views

2025-01-04 04:42

1 Answers

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AhmedNazir · Accepted Answer · 2022-09-01T13:21:41+06:00

AhmedNazir

Answer: Option 1

Risk which arises from insufficient capital available to balance sudden decrease in assets value is classified as insolvency risk. Insolvency risk is defined as the risk that an individual or company will not be able to meet its debt obligations.

6 views Answered 2022-09-01 13:21