Question: What type of risk does each of the following situations portray?
a. After the attack on the World Trade Center, several major insurance companies did not have sufficient cash assets available to meet casualty claims.
b. ABC Bank, located along the U.S.- Mexican border, was holding a large quantity of Mexican pesos when the value of the peso collapsed.
c. Friendly S&L specializes in fi xed rate mortgages. There is a sharp increase in short- term interest rates.
d. A family needs funds immediately to meet a medical emergency. All of its assets are tied up in real estate. e. I am planning a trip to Eu rope next summer and have exactly $5,000. At the present exchange rates, I will have a great time. Is there any doubt?
f. Chad takes a loan for an expensive racing truck and then loses his job.