Which of the Following Is NOT an Example of Market

question 88

Multiple Choice

Which of the following is NOT an example of market risk?

• A)A share investor whose portfolio has been devastated by a stock-market crash.
• B)A loan on which the borrower is unable to make scheduled repayments.
• C)A borrower who finds that interest rates in the money market are higher than expected.
• D)An importer that has to cope with an unexpected depreciating exchange rate.
• E)A fund manager intending to sell at a future date that may face falling share prices.

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Definitions:

Out-Of-Pocket Costs

Expenses that are paid directly out of one’s finances and are not reimbursed.

Copayments

A fixed amount paid by a patient each time a medical service is accessed, with the remainder covered by health insurance.

Deductibles

Deductibles are the amount an insurance policyholder must pay out-of-pocket before the insurance coverage begins to pay for covered losses.

Out-Of-Pocket

Expenses that are paid directly in cash or cash equivalents during a transaction, without any form of credit.