Which One of the Following Companies Is Most Likely to Be

question 89

Multiple Choice

Which one of the following companies is most likely to be exposed to the least amount of macro risk?

• A) A producer of dog biscuits
• B) A regional airline
• C) A major commercial bank
• D) A machine tool manufacturer

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Definitions:

Default Risk

The risk that a borrower will not repay a loan according to the agreed terms, leading to potential losses for the lender.

Glass-Steagall Act

An act of Congress in 1933 that separated investment banking from retail banking to reduce financial speculative bubbles and prevent bank failures.

Commercial Banking

Banking services provided to businesses and individuals, including deposit taking, lending, and various other financial transactions.

Investment Banking

A sector of the banking industry that deals with the creation of capital for other companies, governments, and other entities.