Which of the Following Best Describes the Term Sensitivity Analysis

question 148

Multiple Choice

Which of the following best describes the term sensitivity analysis?

• A) Evaluating the risk level of an investment
• B) Analyzing the effect of an investment on workers' morale
• C) Evaluating several different investment options
• D) Testing the results of an investment under varying different assumptions

---

Definitions:

Financial Account

A component of a country’s balance of payments that records transactions of foreign investment and domestic investment abroad, reflecting changes in ownership of international assets.

Financial Account

A component of a country's balance of payments that records transactions involving financial assets and liabilities between residents and non-residents over a period.

Capital Account

A national account that shows the net change in asset ownership for a nation, including assets from financial and physical capital.

Current Account

This term refers to a country's transactions with the rest of the world, including trade in goods and services, earnings on investments, and transfer payments.