Liquidity risk_____________.

is the risk that investment bankers normally face
is lower for small OTCEI stocks than for large NSE stocks
is the risk associated with secondary market transactions
increases whenever interest rates increase.

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.

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