Which One of the Following Is an Example of Unsystematic

question 106

Multiple Choice

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

• A)income taxes are increased across the board
• B)a national sales tax is adopted
• C)inflation decreases at the national level
• D)an increased feeling of prosperity is felt around the globe
• E)consumer spending on entertainment decreased nationally

---

Definitions:

Service Cost

The expense recognized by an employer for the portion of projected benefit obligations earned by employees in the current period in a defined benefit plan.

Interest Cost

The total interest expense associated with borrowing money, including the amortization of any discount or premium, relevant to the period in which it is incurred.

Prior Service Cost Amortization

The process of allocating the cost of retroactively awarded benefits of an employee's pension plan over several years.