________ is the risk of not being able to cash out an investment quickly enough to either meet cash flow needs or to prevent a loss.
A)Default risk
B)Interest rate risk
C)Market risk
D)Liquidity risk

Question

Quizplus · Accepted Answer

Liquidity risk refers to the risk of not being able to sell an investment quickly enough to either meet cash flow needs or to prevent a loss. It arises when there is a lack of buyers in the market or when there is insufficient trading volume. This risk is especially relevant for investments that are not actively traded or for investments that have a limited market. Therefore, choice D) is the correct answer.

________ Is the Risk of Not Being Able to Cash