Question : Which of the following is not a type of exchange rate risk?
Option 1: Credit risk
Option 2: Interest rate risk
Option 3: Economic risk
Option 4: Political risk
Answer (1)
17th Jan, 2024
Correct Answer: Credit risk
Solution : The correct answer is (a) Credit risk
Credit risk is not a type of exchange rate risk. Credit risk refers to the risk of a borrower defaulting on their financial obligations, such as failing to repay a loan or meet interest payments. It is unrelated to exchange rate movements.
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