n NISM Certifications
VII NISM Series VII
Medium

Risk arising due to political destabilization is known as ______.

Practice question from NISM Series VII Mock Test 6 — bank. The correct answer is highlighted below with a full explanation.

Options

  1. A

    Credit risk

  2. B

    Operational risk

  3. C

    Reinvestment risk

  4. Market risk

    Correct answer

Why this is the answer

Market risk arises from factors beyond control, like political instability, economic changes, or financial crises, affecting asset prices.

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