The following examples demonstrate some of the potential pitfalls your investments might encounter. Select the primary type of investment risk that corresponds to each of the given descriptions. (Hint: These are not necessarily complete descriptions, but there is only one possible answer for each description.) Description Primary Risk Business risk Prior to 2008-2009, the shoe company Runner's High had been growing at a steady pace, expanding its product line and entering markets in new regions. When the recession hit, however, inventories piled up as sales declined, such that the company was unable to make payments to some of its suppliers. Financial risk Interest rate risk Liquidity risk Government securities guarantee fixed payments and set intervals. If the demand for money declines, however, the value of these securities declines as well. Market risk Purchasing power risk In some markets there are many buyers and sellers, such that it is relatively easy to cash-in an investment at any given time. In thin markets, however, it may be difficult to find a buyer in a timely manner, forcing the seller to lower the price and lose money on the investment