Why Do Transform Faults Form

question 16

Multiple Choice

Why do transform faults form?

• A) They form due to remnants of convergent boundaries.
• B) They form as results of secondary seismic waves.
• C) They form due to lithospheric plate subduction zones.
• D) They form because the axis of seafloor spreading across the surface of the Earth cannot follow a straight line smoothly.

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Definitions:

Systematic Risk

The risk inherent to the entire market or an entire market segment, also known as non-diversifiable risk or market risk.

Diversification

Strategy of spreading investments across various financial assets, industries, or other categories to reduce risk.

Inflation Risk

The hazard that the value of assets or income will be eroded as inflation shrinks the value of a country's currency.

Business-Specific Risk

The risk associated with the particular circumstances of a specific company, which can affect its earnings and thus its stock price.