A Possible Reason for the High Systematic Risk of VAREX

question 47

Multiple Choice

A possible reason for the high systematic risk of VAREX in LCDs and EMs is

• A)the tendency of world commodity prices to reflect non-similar economic conditions.
• B)the sensitivity of this ratio to rising nominal and real interest rates in the developed,or lending,countries.
• C)the tendency of prices and world demands for commodities to reflect simultaneously economic conditions.
• D)the discretionary nature of money supply growth for LDC governments.

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Definitions:

Basic Trust

According to Erik Erikson, a sense that the world is predictable and trustworthy; said to be formed during infancy by appropriate experiences with responsive caregivers.

Erikson

Erikson refers to Erik Erikson, a developmental psychologist known for his theory on the psychosocial development of human beings through eight stages from infancy to adulthood.

Insecure Attachment

Insecure attachment refers to a type of attachment style characterized by anxiety, fear of abandonment, and difficulty in trusting relationships, stemming from early relationships with caregivers.

Artificial Mothers

Reference to research setups, often in psychology, where infants or young animals are provided with substitute mother figures made from materials like cloth or wire to study attachment behavior.