Which of the Following Actions Does Not Help Reduce Risk

question 6

Multiple Choice

Which of the following actions does not help reduce risk?

• A)extending the service warranty for your notebook
• B)converting your money market account to a mutual fund account
• C)contracting to sell your farm produce to the neighborhood grocery
• D)buying Japanese yen now when you plan to study in Japan next year

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Definitions:

Face Value

The nominal or original value stated on a financial instrument, such as a bond or currency bill, not necessarily its current market value.

Possession

The state of having, owning, or controlling something, either tangibly or legally.

Holder In Due Course

A legal term for a person who has obtained a negotiable instrument in good faith and for value, and thus has certain rights above the original payee.

Breached The Contract

The act of failing to perform obligations stipulated in a contract, leading to a violation of the agreement.