Which of the Following Provides the Best Example of a Systematic

question 30

Multiple Choice

Which of the following provides the best example of a systematic risk event?

• A)A strike by union workers hurts a firm's quarterly earnings.
• B)Cattle disease in Queensland hurts local farmers and buyers of beef.
• C)The Reserve Bank increases interest rates 50 basis points.
• D)A senior executive at a firm embezzles $10 million and escapes to South America.

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Definitions:

FreeWill

The ability to make choices that are not determined by prior causes or by divine intervention.

Offering

A product, service, or idea presented to the market by a business, including attributes like price, quality, and features catering to the needs or desires of consumers.

Economic Activities

Actions that relate to the production, distribution, and consumption of goods and services in an economy.

Tax Burden

The total amount of taxes that individuals or businesses must pay to governmental authorities.