Which Term Refers to the Risk That the Cost of Rolling

question 123

Multiple Choice

Which term refers to the risk that the cost of rolling over or re-borrowing funds will rise above the returns being earned on asset investments?

• A)Reinvestment risk.
• B)Credit risk.
• C)Refinancing risk.
• D)Liquidity risk.
• E)Sovereign risk.

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Definitions:

Federal Trade Commission Act

A United States federal law established in 1914 to prevent unfair competition and deceptive practices in the marketplace.

Price Fixing

The practice of colluding with other firms to control prices.

Marketing Channel

The paths or routes that products and services take from the time they are produced until they are purchased by consumers, including intermediaries such as distributors and retailers.

Horizontal Price Fixing

Occurs when competitors that produce and sell competing products collude, or work together, to control prices, effectively taking price out of the decision process for consumers.