When a Natural Disaster Occurs in the Twenty-First Century

question 6

Multiple Choice

When a natural disaster occurs in the twenty-first century,

• A)financial markets and global economies react rapidly - sometimes with dire effects.
• B)global financial markets go into meltdown.
• C)most people and governments ignore pleas for help.
• D)it has little effect outside the region concerned.

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Definitions:

Par Value

The face value of a bond or stock as stated by the issuing company, which may not reflect its market value.

Semiannual

Occurring twice a year; a term often used in the context of interest payments, dividends, or certain financial reporting periods.

Interest Expense

The cost incurred by an entity for borrowed funds, frequently appearing as a line item on the income statement.

Market Rate

The prevailing interest rate available in the marketplace for securities or loans, varying with the demand, supply, and risk.