Macro Pvt Ltd

question 30

Multiple Choice

Macro Pvt. Ltd. is a software development firm that provides software in accounting, customer relationship management, HR and payroll management, and enterprise resource planning. The firm is based in Virginia and has operations across different continents. The firm had a unit in Syria, where there were severe disturbances by anti-government groups. The instability in Syria made it difficult for Macro Pvt. Ltd. to run its business operations in that country. This implies that the firm was experiencing a _____ in Syria.

• A) political risk.
• B) cultural risk.
• C) default risk.
• D) legal risk.
• E) lifetime risk.

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Definitions:

Open Market

A marketplace that is open to all participants, where buyers and sellers engage in trade without significant restrictions or regulations.

Interest Rates

The percentage of a sum of money charged for its use, often expressed annually.

Excess Reserves

The amount of reserves that a bank holds beyond the required minimum set by the central bank or regulatory authority.

Liquidity

Money or things that can be quickly and easily converted into money with little or no loss of value.