Which of the Following Risks Would Not Be Faced by Investors

question 88

Multiple Choice

Which of the following risks would not be faced by investors in domestic bonds?

• A) credit (or default) risk
• B) interest rate risk
• C) reinvestment rate (or rollover) risk
• D) exchange rate risk

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Definitions:

M.D.

Stands for Doctor of Medicine, a degree awarded to physicians by medical schools.

M.S.

An abbreviation for Multiple Sclerosis, a chronic autoimmune disease that affects the central nervous system, leading to various neurological symptoms.

Ergonomics

The study and design of equipment, systems, and processes that fit the human body and its cognitive abilities, aimed at maximizing efficiency and reducing discomfort or injury.

Human Factors

An interdisciplinary field focusing on the interactions among humans and other elements of a system, aiming to optimize human well-being and overall system performance.