The Recession of 2001 Was Caused by

question 181

Multiple Choice

The recession of 2001 was caused by

• A)the events of 9/11.
• B)a decline in consumer spending.
• C)a decline in investment spending.
• D)the war in Iraq.

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Definitions:

Accepting Risk

Accepting risk involves recognizing and undertaking the chance of loss or damage in the expectation of a potential gain.

Systematic Risk

The risk inherent to the entire market or an entire market segment, also known as non-diversifiable risk or market risk.

Diversification

Strategy of spreading investments across various financial assets, industries, or other categories to reduce risk.

Inflation Risk

The hazard that the value of assets or income will be eroded as inflation shrinks the value of a country's currency.