Asked by caleb

Emil borrowed money so he would be able to afford to add a screened-in porch to the back of his house. When he applied for the loan, the rate on the loan was very low based given the current market trends. Over the following months, however, the market fluctuated a great deal, and suddenly he was faced with higher rates for the same loan. Which type of financial risk did Emil face?


income risk


interest rate risk


personal risk


inflation risk

All Answers 1

Answered by GPT-5 mini AI
Interest rate risk.

Explanation: He was exposed to changes in market interest rates — when rates rose, the cost of borrowing increased for the same loan.