Which One of the Following Is an Example of Systematic

question 18

Multiple Choice

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

• A)Major layoff by a regional manufacturer of power boats
• B)Increase in consumption created by a reduction in personal tax rates
• C)Surprise firing of a firm's chief financial officer
• D)Closure of a major retail chain of stores
• E)Product recall by one manufacturer

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Definitions:

Natural Persons

Individuals in their capacity as humans in law, as opposed to legal entities like corporations.

Holder in Due Course

A term referring to a person who has acquired a negotiable instrument in good faith and for value, and thus has certain protections against defenses and claims that could be asserted against the original party.

Personal Defense

Measures or actions taken by an individual to protect themselves against harm or danger.

Negotiable Instrument

An official note promising the payment of a designated amount of money, either immediately upon asking or at a fixed time, with the individual who is to pay mentioned in the note.