The possibility that the fed may raise the discount rate is an example of

A. Political Risk
B. Exchange rate risk
c. interest rate risk
d. liquid risk

since the discount rate is an interest rate, what do you think?

C. Interst rate risk

The possibility that the Fed may raise the discount rate is an example of interest rate risk (C). The discount rate is the interest rate at which commercial banks can borrow funds from the Federal Reserve. When the Fed raises the discount rate, it becomes more expensive for banks to borrow money, which can have a ripple effect on other interest rates in the economy.

To determine the correct answer, you can go through the following steps:

1. Understand the terms: Review the definitions of political risk, exchange rate risk, interest rate risk, and liquid risk. Political risk refers to the potential impact of political events or decisions on an investment. Exchange rate risk is the risk of an investment's value being affected by changes in exchange rates. Liquid risk refers to the risk of an asset or investment not being easily convertible into cash without significant loss in value.

2. Analyze the situation: Consider the information given in the question. The possibility of the Fed raising the discount rate implies a potential change in interest rates.

3. Match the situation with the correct term: Based on the understanding of the terms, you can identify that interest rate risk best describes the possibility of the Fed raising the discount rate.

Therefore, the correct answer is C: interest rate risk.