15-72 a Possible Reason for the High Systematic Risk of DSR

question 57

Multiple Choice

15-72 A possible reason for the high systematic risk of DSR is

• A)the tendency of world commodity prices to reflect nonsimilar economic conditions.
• B)the sensitivity of this ratio to rising nominal and real interest rates in the developed 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.
• E)different demands for imports,and wide differences in the scale of vital imports across LDCs.

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Definitions:

Operating Statement

Another term for an income statement, which shows a company's revenue and expenses over a specific period, resulting in the net profit or loss.

Net Income

A company's overall earnings post the deduction of all expenditures, taxes, and operational costs from its gross revenue.

Liabilities

Liabilities are financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits including money, goods, or services.

Assets

Economic resources controlled or owned by a business or individual from which future economic benefits are expected to flow.