n NISM Certifications
NSM General NISM
Medium

Interest rate risk is also known as ________.

Practice question from NISM Series IV - Mock Test 3 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Reinvestment risk

  2. B

    Credit risk

  3. Price risk

    Correct answer

  4. D

    None of the above

Why this is the answer

Interest rate risk is also referred to as price risk or market risk — the risk that bond prices will change due to fluctuations in interest rates.

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