Banking Awareness - Banking Acts, Reforms & Risk Management
Which banking risk arises primarily due to changes in macroeconomic conditions like inflation and GDP growth?
Which banking risk arises primarily due to changes in macroeconomic conditions like inflation and GDP growth?
medium Q10 of 15
Step-by-Step Solution
Step 1: Identify influencing factors
Inflation and GDP changes affect market conditions.Step 2: Classify the risk
Such macroeconomic movements fall under market risk.Final Answer:
Market risk → Option BQuick Check:
Macroeconomic changes = Market risk ✅
Quick Trick: Macro variables influence market risk.
Common Mistakes:
MISTAKES- Attributing macroeconomic effects directly to operational risk.
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