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15 April, 21:18

Select the correct answer. Nisha invested a lot of money in real estate a few years ago. Now that she plans to move to another city, she's been trying to find a buyer for her property. It is taking her a lot longer than expected to find a buyer. What type of risk is Nisha facing as an investor? A. call risk B. credit risk C. currency risk D. liquidity risk E. taxability risk

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  1. 15 April, 21:30
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    D. liquidity risk

    Explanation:

    Liquidity risk refers to the risk that occurs when a person or an organization unable to convert their hard assets into cash or cash equivalent as soon as possible.

    This can be seen In the example above,

    After moving to another city, Nisha probably need her money to purchase new property or purchase her basic needs. But she can't do it until she's able to sell the property that she has in her old place. This is why unable to sell her property created a liquidity risk for Nisha.
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