Insolvency risk at a financial intermediary (FI)is the risk:______.

Business

1 answer:

nlexa [21]4 years ago

6 0

Answer:

Option e is the correct approach.

Explanation:

The possibility that a person or, in particular, a corporation will not be able to meet its financial. Bankruptcy risk goes up if the entity or company seems to have no working capital or handles its finances poorly. Financial institutions evaluate the possibility of bankruptcy before deciding whether to offer a loan. It is often referred to as insolvency risk.
The FI seems to be an organization that serves as an agent amongst involved individuals to a financial exchange, including financial institutions, hedge banks, mutual funds as well as private investors.

Other decisions are taken aren't relevant to the situation. So that alternative e was its right one.

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