Which of the Following Are the Most Frequently Utilized Tools

question 38

Multiple Choice

Which of the following are the most frequently utilized tools of fiscal policy in the United States?

• A)Indirect business taxes
• B)Corporate income taxes
• C)Inheritance taxes
• D)Personal income taxes

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Definitions:

Unique Risk

Risk that affects a very limited number of assets, often referred to as "unsystematic risk" or "idiosyncratic risk."

Diversifiable Risk

The portion of an investment's risk that can be mitigated or eliminated through portfolio diversification.

Correlation Coefficient

A statistical measure that calculates the strength and direction of a linear relationship between two variables.

Covariance

A measure of how two variables move in relation to each other, used in finance to diversify portfolios and minimize risk.