Banking Awareness - Banking Acts, Reforms & Risk Management
Losses due to fluctuations in foreign exchange rates faced by a bank fall under:
Losses due to fluctuations in foreign exchange rates faced by a bank fall under:
easy Q2 of 15
Step-by-Step Solution
Step 1: Identify the cause of loss
The loss occurs due to changes in foreign exchange rates.Step 2: Classify the risk
Risks arising from movements in market variables are market risks.Final Answer:
Market risk → Option BQuick Check:
Exchange rate movement = Market risk ✅
Quick Trick: Market variable changes always mean market risk.
Common Mistakes:
MISTAKES- Linking forex losses to operational failures.
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