Which of the Following Is NOT an Example of Financial

question 30

Multiple Choice

Which of the following is NOT an example of financial risk exposure for a company?

• A) When interest rates increase and a larger proportion of mortgage payments are in default for a bank
• B) When a local currency decreases for an exporter
• C) When a company has taken out a short-term loan and floating interest rates increase
• D) When interest rates increase for a highly geared company

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Definitions:

Disequilibrium

A state of imbalance or instability, often used in economics to describe markets where supply and demand are not in balance, and in psychology, to describe the conflict experienced when existing knowledge does not fit with new information.

Imitative Capacity

The ability of an individual to mimic or reproduce actions, behaviors, or sounds observed from others.

Deferred Imitation

Imitating the behavior of an absent model; illustrates infants’ capacity for mental representation.

A-not-B Ability

A cognitive phenomenon observed in infants where they reach for a hidden object where they last found it (A) rather than its new location (B), showcasing a development phase in object permanence understanding.