Which of the Following Was a Consequence of the Financial

question 4

Multiple Choice

Which of the following was a consequence of the financial revolution which drastically changed risk management in the 1970s?

• A)Managements created separate categories for handling different types of risks.
• B)A group of specialists were created who handled risk assessment for the entire organization and reported only to headquarters.
• C)Risk analysis was decentralized by concentrating on risks at the division-level.
• D)It became easier to assess market risk with the introduction of various new tools of financial management.

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Definitions:

Global Inequality

The unequal distribution of resources and opportunities between countries or regions around the world, often measured by income, wealth, or access to services.

International Differences

The variations or disparities between countries and cultures, covering aspects such as legal systems, social norms, economic policies, and cultural practices.

Feudalism

A legal arrangement in preindustrial Europe that bound peasants to the land and obliged them to give their landlords a set part of the harvest. In exchange, landlords were required to protect peasants from marauders and open their storehouses and feed the peasants if crops failed.

Manufacturing Production

The process of converting raw materials or components into finished goods through the use of machinery and labor in factories.