Political Risk Is Defined As

question 20

Multiple Choice

Political risk is defined as:

• A) Unanticipated changes in exchange rates
• B) Unanticipated actions by the host government affecting the cash flows of a project
• C) Unanticipated actions by the World Bank affecting the cash flows of a project
• D) All of the above

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Definitions:

Interest Rate

The percentage of a sum of money charged for its use, often expressed annually, affecting loans and savings.

Present Value

The current worth of a future sum of money or stream of cash flows given a specified rate of return.

Present Value

The present value is the current value of a future sum of money or stream of cash flows, discounted at a specified rate of interest.

Cash Flows

The total amount of money being transferred in and out of a business, serving as a measure of its financial health.