The Degree of Uncertainty an Entity Is Willing to Take

question 46

Multiple Choice

The degree of uncertainty an entity is willing to take on in anticipation of a reward is

• A)risk appetite
• B)risk tolerance  
• C)risk utility
• D)unknown risk

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Definitions:

Poorest

Referring to the individuals or groups with the lowest income and wealth levels in a society.

Soft Loans

Loans that are offered with more favorable terms than market loans, typically including lower interest rates and longer repayment periods.

Developing Countries

Nations with a lower level of industrialization, lower standard of living, and lower Human Development Index compared to developed countries.

International Development Association

A part of the World Bank that helps the world’s poorest countries by providing loans and grants for projects and programs that boost economic growth and improve living conditions.