Democracy Has Been Defined as Rule by the People,for the People.Why

question 15

Multiple Choice

Democracy has been defined as rule by the people,for the people.Why is this deceiving when discussing modern liberal democracy?

• A) It describes direct democracy, which is rare.
• B) It described direct democracy, not liberal democracy.
• C) It assumes majorities will not overrule minorities.
• D) It suggests that all people have the franchise, when in fact there are limits.

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Definitions:

Nondiversifiable Risk

The portion of an investment's risk that cannot be eliminated through diversification, often associated with market-wide risks.

Systematic Risk

The danger that affects the whole market or a part of the market, which cannot be reduced by diversifying investments.

Unique Risk

A risk that affects a very small number of assets, also known as unsystematic risk, specific risk, or idiosyncratic risk, and can be largely eliminated by diversification.

Market Risk

The risk of losses in investments due to factors that affect the overall performance of the financial markets, including economic, political, and geopolitical events.