[amp_mcq option1=”is the risk that investment bankers normally face” option2=”is lower for small OTCEI stocks than for large NSE stocks” option3=”is the risk associated with secondary market transactions” option4=”increases whenever interest rates increase.” correct=”option3″]
The correct answer is: C. is the risk associated with secondary market transactions.
Liquidity risk is the risk that an asset or security cannot be easily converted into cash without a significant loss in value. This risk is associated with secondary market transactions, as it is the market in which assets are bought and sold after they have been issued.
Option A is incorrect because investment bankers face a variety of risks, including liquidity risk.
Option B is incorrect because small OTCEI stocks are often less liquid than large NSE stocks.
Option D is incorrect because liquidity risk is not necessarily affected by interest rates.