Risks That Affect Only a Single Firm Are Called

question 25

Multiple Choice

Risks that affect only a single firm are called:

• A) market risks.
• B) specific risks.
• C) systematic risks.
• D) risk premiums.

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Definitions:

National Association of Securities Dealers (NASD)

A self-regulatory organization for the securities industry responsible for the operation and regulation of the NASDAQ stock market and over-the-counter markets.

Brokers

Individuals or firms that act as intermediaries between buyers and sellers, often in financial markets, facilitating transactions for a commission or fee.

Federal Open Markets Committee

Fed body that has primary responsibility for money policy.

Bank Mergers

A process where two or more banks consolidate their assets and operations to form a single, larger entity.