The Risk Cause by Changes in Inflation That Affect Revenues,expenses

question 16

Multiple Choice

The risk cause by changes in inflation that affect revenues,expenses and profitability is called:

• A)interest rate risk
• B)business risk
• C)tax risk
• D)financial risk
• E)none of the above

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Definitions:

Quantity Supplied

The total amount of a good or service that producers are willing and able to sell at a given price over a specific period.

Quantity Demanded

The amount of a good or service consumers are willing and able to buy at a specific price level, ceteris paribus.

Equilibrium Price

The price level where the supply of goods meets the demand for those goods.

Loanable Funds

The total funds available in the financial markets for borrowing, which come from savings and are used for investment.