Economists Define Risk as

question 11

Multiple Choice

Economists define risk as

• A) the difference between the interest rate borrowers pay and the interest rate lenders receive.
• B) the chance that the value of financial assets will change from what you expect.
• C) the ease with which an asset can be exchanged for other assets or for goods and services.
• D) the difference between the return on common stock and the return on corporate bonds.

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Definitions:

Prognosis

A forecast or prediction about the likely outcome or course of a disease based on the individual’s condition and medical knowledge.

Adaptive Functioning

A person's ability to manage common demands of life and meet the standards expected for their age and cultural group, including social and practical skills.

Personal Distress

A psychological discomfort or anguish experienced as a response to stressful situations or emotional pain.

Social Norms

Unwritten rules that govern the expectations of social behavior in a group or society.