Government securities guarantee fixed payments and set intervals. If the demand for money declines, however, the value of these securities declines as well.Drop down:business risk; financial risk; interest rate risk; liquidity risk; market risk; purchasing power risk

Respuesta :

The type of risk that will see the value of securities dropping due to the demand for money declining, is interest rate risk.

What is interest rate risk?

Interest rate risk is the risk that the value of fixed payment investments such as government securities, could lose value if the interest rates in the market decreased and there was therefore a loss of demand.

This is why the risk that the value of government securities decreases, when there is a lower demand for money, falls under interest rate risk.

In conclusion, the risk involved when the value of securities fall is interest rate risk.

Find out more on interest rate risk at https://brainly.com/question/29051555

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