Consider the following statements about Market Risk:
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Market Risk arises due to fluctuations in market prices affecting on- or off-balance sheet positions.
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Market Risk is predominantly faced by retail banks with only deposit accounts.
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Investment banks are more exposed to Market Risk compared to other types of banks.
Which of the above statements is/are correct?
1
1 only
2
1 and 2 only
3
1 and 3 only
4
2 and 3 only
5
All are correct