Which of the Following Is Not One of the Elements

question 2

Multiple Choice

Which of the following is not one of the elements of financial risk in a supply base?

• A)Inventory carrying costs.
• B)Currency exchange rates.
• C)Incoterms.
• D)Hard vs.soft currencies.
• E)Legal systems.

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Definitions:

Maturity

The date on which the principal amount of a financial instrument, such as a bond or loan, becomes due and payable.

Bond Portfolios

Collections of bonds held by investors or institutions, designed to achieve certain financial goals while managing risk and return.

Indexing

The investment strategy of replicating the performance of a market index, often through passive fund management.

Duration

A measure of the sensitivity of the price of a bond or a fixed income portfolio to changes in interest rates.