__ risk is the potential loss from converting an investment into cash. a Credit b Interest rate C Liquidity d Asset

The correct answer is C. Liquidity.Liquidity risk refers to the potential loss that an investor may face when trying to convert an investment into cash. It is the risk that an investor may not be able to sell an investment quickly enough or at a fair price to meet their cash needs.Liquidity is a measure of how easily an asset can be converted into cash without affecting its market price. Assets with high liquidity, such as cash or highly liquid stocks, can be easily sold or converted into cash without a significant impact on their value. On the other hand, assets with low liquidity, such as real estate or illiquid stocks, may take longer to sell and may be subject to significant price discounts to attract buyers.Investors need to be aware of liquidity risk when making investment decisions, as it can affect their ability to access their funds when needed. For example, an investor who holds a highly illiquid investment may face difficulties in accessing their funds in case of an emergency or unexpected expense.