Losses That Arise as a Result of the Impact of Unfavourable

question 47

True/False

Losses that arise as a result of the impact of unfavourable movements in market prices are known as operational risk.

---

Definitions:

United States

A federal republic in North America consisting of 50 states, a major global economic and political power.

Laissez-Faire Economics

A market system with minimal government intervention, where private parties are free to conduct business as they see fit.

Keynes

Refers to John Maynard Keynes, a British economist whose theories on the impact of government policies on economic recessions and depressions have significantly influenced modern macroeconomics.

The Classicals

A group of economists in the late 18th and early 19th centuries who believed in free markets, free trade, and limited government intervention in the economy.