Which of the Following Is an Example of an Unsystematic

question 37

Multiple Choice

Which of the following is an example of an unsystematic risk exposure for a company?

• A) A change in interest rates
• B) A change in foreign exchange rates
• C) Political instability in a country
• D) Change in future performance forecast for a company

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Definitions:

Interest Rates

The cost of borrowing money, typically expressed as a percentage of the principal, which lenders charge borrowers for the use of their money.

Reserve Requirements

Regulations set by central banks determining the minimum amount of reserves that banks must hold against deposits.

Discount Rate

The interest rate charged to commercial banks and other financial institutions for loans they take from the Federal Reserve's discount window.

Induce

To lead or move by persuasion or influence, often to bring about or provoke a specific action or outcome.