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The Federal Reserve wants to increase the money supply by printing and distributing 1 million dollars worth of currency notes. What will be the actual increase in money supply if the public holds one fourth of the currency as cash, and deposits rest of the money in banks that hold 5 percent of their deposits as reserves?
Unsystematic Risk
The risk inherent to a specific company or industry, which can be mitigated through diversification of an investment portfolio.
Political Risk
The risk that an investment's returns could suffer due to political changes or instability in a country, which can affect the business environment and profitability.
Correlation Risk
The potential for financial loss due to changes in the relationship or correlation between the performances of two or more assets.
Diversified Risk
Diversified risk refers to the reduction of risk in an investment portfolio by allocating investments among various financial instruments, industries, or other categories.
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