The Possible Loss of Investment or Control Over Foreign Assets

question 1

Multiple Choice

The possible loss of investment or control over foreign assets due to instability or political changes in foreign countries is called __________.

• A) political instability
• B) adverse operating conditions
• C) political risk
• D) environmental instability

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Definitions:

Federal Government

The Federal Government is the national government of a federation, responsible for governing a country according to its laws and regulations, distinct from state or local governments.

Inflationary Pressures

Economic conditions that tend to lead to inflation, which is an increase in prices and decrease in the purchasing value of money, often resulting from supply and demand imbalances.

Money Supply

The total amount of money available in an economy at a particular time, including cash, bank deposits, and liquid assets.

Federally Insured Commercial Banks

Financial institutions engaged in deposit-taking and lending that are covered by a federal insurance program to protect depositors' funds in the event of the bank's failure.