D r a f t f o r d i s c u s s i o n o n l y 12 CANADIAN SCHOOL BOARDS ASSOCIATIONS L'ASSOCIATION CANADIENNE DES COMMISSIONS/CONSEILS SCOLAIRES NOTES TO FINANCIAL STATEMENTS MARCH 31, 2019 7. Financial instruments (continued) Market risk Market risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices. Market risk comprises three types of risk: currency risk, interest rate risk and other price risk. The Association is mainly exposed to interest rate risk. Interest rate risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market interest rates. The Association is exposed to interest rate risk on its fixed rate financial instruments. The Association's exposure to interest rate risk relates primarily to the return it earns on its term deposit, which subjects it to a fair value risk.