UGC NET Exam > UGC NET Questions > Indicate the statement which is not correct:i...
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Indicate the statement which is not correct:
i. Credit risk is loss on account of default of repayment of loan.
ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.
iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.
iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.
ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.
iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.
iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.
- a)ii & iii
- b)i and ii
- c)iii & iv
- d)None of the above
Correct answer is option 'D'. Can you explain this answer?
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Most Upvoted Answer
Indicate the statement which is not correct:i. Credit risk is loss on ...
When there is risk of loss of principal, or risk of repayment loan it is known as credit risk. Therefore, 1st statement is true.
Liquidity risk is a risk when given security or asset cannot be traded in market and therefore, inflow and outflow of firm mismatches. Statement-ii also says the same therefore it is also a correct statement.
Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up. it is also a correct statement.
Forward rate contract is a contract made between parties that determine the fixed rate of interest or the currency exchange rate to be paid or received in a future date. Whatever the rates in future, irrespective of that receiver will get amount based on that rates and other party is bound to pay rate that is fixed when contract is made. Here, party protects itself from loss if there is decrease in interest rates. 3rd statement also explains the same. Therefore, it is a correct statement.
All the above statements are correct and none of the statement is wrong.
Liquidity risk is a risk when given security or asset cannot be traded in market and therefore, inflow and outflow of firm mismatches. Statement-ii also says the same therefore it is also a correct statement.
Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up. it is also a correct statement.
Forward rate contract is a contract made between parties that determine the fixed rate of interest or the currency exchange rate to be paid or received in a future date. Whatever the rates in future, irrespective of that receiver will get amount based on that rates and other party is bound to pay rate that is fixed when contract is made. Here, party protects itself from loss if there is decrease in interest rates. 3rd statement also explains the same. Therefore, it is a correct statement.
All the above statements are correct and none of the statement is wrong.
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Community Answer
Indicate the statement which is not correct:i. Credit risk is loss on ...
When there is risk of loss of principal, or risk of repayment loan it is known as credit risk. Therefore, 1st statement is true.
Liquidity risk is a risk when given security or asset cannot be traded in market and therefore, inflow and outflow of firm mismatches. Statement-ii also says the same therefore it is also a correct statement.
Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up. it is also a correct statement.
Forward rate contract is a contract made between parties that determine the fixed rate of interest or the currency exchange rate to be paid or received in a future date. Whatever the rates in future, irrespective of that receiver will get amount based on that rates and other party is bound to pay rate that is fixed when contract is made. Here, party protects itself from loss if there is decrease in interest rates. 3rd statement also explains the same. Therefore, it is a correct statement.
All the above statements are correct and none of the statement is wrong.
Liquidity risk is a risk when given security or asset cannot be traded in market and therefore, inflow and outflow of firm mismatches. Statement-ii also says the same therefore it is also a correct statement.
Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up. it is also a correct statement.
Forward rate contract is a contract made between parties that determine the fixed rate of interest or the currency exchange rate to be paid or received in a future date. Whatever the rates in future, irrespective of that receiver will get amount based on that rates and other party is bound to pay rate that is fixed when contract is made. Here, party protects itself from loss if there is decrease in interest rates. 3rd statement also explains the same. Therefore, it is a correct statement.
All the above statements are correct and none of the statement is wrong.
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Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer?
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Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer? for UGC NET 2024 is part of UGC NET preparation. The Question and answers have been prepared according to the UGC NET exam syllabus. Information about Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UGC NET 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer?.
Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer? for UGC NET 2024 is part of UGC NET preparation. The Question and answers have been prepared according to the UGC NET exam syllabus. Information about Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer? covers all topics & solutions for UGC NET 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer?.
Solutions for Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer? in English & in Hindi are available as part of our courses for UGC NET.
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Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer?, a detailed solution for Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer? has been provided alongside types of Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer? theory, EduRev gives you an
ample number of questions to practice Indicate the statement which is not correct:i. Credit risk is loss on account of default of repayment of loan.ii. Liquidity risk is the risk on account of the mismatches of cash inflow and outflow in a firm.iii. Basic risk is the risk in a firm owing to the differences in the index to which financial assets and liabilities are tied up.iv. Forward rate agreement is a contract where a borrower/lender locks the interest rate and protects itself from the loss on account of change in the future interest rate.a)ii & iiib)i and iic)iii & ivd)None of the aboveCorrect answer is option 'D'. Can you explain this answer? tests, examples and also practice UGC NET tests.
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