The Risk That the Value of a Security Will Change

question 30

Multiple Choice

The risk that the value of a security will change due to issuer-specific factors and applies to interest rate and equity positions related to a specific issuer is:

• A)specific risk
• B)general market risk
• C)beta
• D)total risk

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Definitions:

Nondiscretionary Fiscal Policy

involves government policies, like taxation and certain types of government spending, that are not easily altered and automatically adjust to economic conditions.

Aggregate Demand

The whole of economic demand for goods and services at a given price level, within a certain time range.

Federal Budget

A government's plan for revenue and spending over a specific period.

National Debt

The total amount of money that a country's government has borrowed by various means, including foreign governments and domestic lenders.