Choose the best answer

Claim 1: Credit risk. This is uncertainty about whether the counterpartys contractual obligations to a transaction are met.

Claim 2: Liquidity risk: This is the risk of loss on the sale of an asset at a time when market conditions make the sale price higher than the underlying fair value of the asset.

Options for question 24:

B. Both statements are false

A. Both statements are correct

C. Only one statement is true