_____ Risk Results from the Behavior of Investors Buying and Selling

question 83

Multiple Choice

_____ risk results from the behavior of investors buying and selling securities that lead to swings in prices.

• A) Business
• B) Financial
• C) Market
• D) Purchasing power
• E) Interest rate

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Definitions:

General Agreement on Tariffs and Trade

An international treaty aimed at promoting international trade by reducing or eliminating trade barriers such as tariffs and quotas; it was replaced by the World Trade Organization (WTO) in 1995.

Voluntary Export Restraint

A self-imposed limitation by exporting countries on the volume of their exports of a particular good.

Subsidy

A financial contribution granted by a government or another entity to support an industry, business, or individual, usually intended to keep prices low, support an essential service, or encourage activities beneficial to the public interest.

Tariff

A tax imposed on imported goods to either raise state revenue or protect domestic industries from foreign competition.