Finance 1

Which term refers to the potential for a portfolio's heavy concentration in a specific asset or sector to result in significant losses?

• Credit Risk

• Market risk

• Liquidity risk

• Concentration risk

Which term refers to the potential for changes in interest rates to impact the value of investments or the cost of borrowing?

• Credit risk

• Market risk

• Liquidity risk

• Interest rate risk

Which term refers to the potential for a lack of marketability or difficulty in converting an investment into cash without causing significant price discounts?

• Credit risk

• Market risk

• Liquidity risk

• Concentration risk

Which term refers to the potential for poor decision-making practices to adversely affect the performance and stability of a credit union?

• Management risk

• Concentration risk

• Credit risk

• Capital risk

What risk refers to the potential for losses due to insufficient reserves to absorb unexpected losses or economic downturns.

• Credit risk

• Liquidy risk

• Market risk

• Capital risk

Which term refers to the potential for borrowers to default on their loans, resulting in financial losses?

• Management risk

• Credit risk

• Capital risk

• Liquidity risk

True or False: An income statement shows a company's financial performance over a period, while a balance sheet presents its financial position at a specific point in time.

• False

• True

On which statement would you find the total balances on credit cards?

• Balance sheet

• Income statement

On which statement would you find out how much money you made on your auto loan portfolio?

• Income statement

• Balance sheet

What are other terms for networth? Select all the apply.

• Asset

• Equity

• Retained earnings

• Capital