Which One of the Following Is an Example of Systematic

question 82

Multiple Choice

Which one of the following is an example of systematic risk?

• A) the price of lumber declines sharply
• B) airline pilots go on strike
• C) the Federal Reserve increases interest rates
• D) a hurricane hits a tourist destination
• E) people become diet conscious and avoid fast food restaurants

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Definitions:

Consumer Transaction

A deal or trade between a seller and a purchaser for goods or services, typically involving personal, family, or household items.

Recall and Destruction

The process of officially ordering the return of a product due to safety concerns or defects, followed by its disposal or destruction.

Lost Future Sales

Revenue that a business could have earned from sales but is unable to due to disruptions, competition, or other factors.

UCC Exception

A specific deviation from the Uniform Commercial Code, allowing for different applications of law in certain cases.