n NISM Certifications
XV NISM Series XV
Medium

Loss in investment value due to declining market prices is classified as which risk?

Practice question from NISM XV Mock Test 1 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Credit Risk

  2. B

    Interest Rate Risk

  3. C

    Liquidity Risk

  4. Market Risk

    Correct answer

Why this is the answer

Market risk arises from adverse movements in the prices of securities, affecting investment values.

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