Which of the following observations is not correct in regard to the different types of risk discussed in class?

1. Geopolitical or country risk is the risk due to fluctuations in currency values.
2. Business risk relates to fixed vs. variable costs of a firms operations.
3. Liquidity risk is the risk that current assets will be insufficient to pay off current liabilities.
4. The risk of price-level changes is also known as inflationary risk.
5. The risks of recession, market downturns and governmental policies may be considered macro-economic risks.