Question

An individual's close relative, who was a resident of London, England, died six months ago. The client expects to receive an inheritance of a large sum of money. What is the fundamental risk the individual is concerned about

Answer 1

Answer: Currency risk

Step-by-step explanation:

From the question, we are told that an individual's close relative, who was a resident of London, England, died six months ago and the client expects to receive an inheritance of a large sum of money.

The risk that can occur here is the currency risk, which is also called the exchange-rate risk, and it is due to change in a currency's price when compared to another currency. Currency risk can lead to profit or loss.