Which One of the Following Is True

question 117

Multiple Choice

Which one of the following is true?

• A) When choosing an investment, risk factors are rarely necessary.
• B) A risk exists that the financial return on an investment will not keep pace with the rate of inflation.
• C) A risk exists that market interest rates of bonds are the result of changes in business conditions faced by companies.
• D) A risk exists that business failures result from moderate changes in market interest rates.
• E) The prices of stocks, bonds, and other investments never fluctuate in the market.

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Definitions:

Canadian Dollar

The currency of Canada, represented by the ISO code "CAD" and symbolized by "$".

U.S. Dollar

The official currency of the United States and a standard unit of measurement for global financial transactions.

Triangle Arbitrage

A riskless profit strategy that takes advantage of discrepancies in exchange rates in different markets by conducting a series of conversions among three currencies.

Currency Market

Also known as the foreign exchange market (Forex), it's a decentralized global market where currencies are traded, determining the foreign exchange rates for every currency.