Which Project Is Likely to Entail the Least Systematic Risk

question 8

Multiple Choice

Which project is likely to entail the least systematic risk?

• A)a Ford plant in Brazil producing engines for export to the U.S.
• B)a Coca Cola plant in Brazil selling locally
• C)a machine tool plant in Japan
• D)a computer disk drive plant in Germany

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Definitions:

Excess Reserves

The amount of reserves a bank holds beyond the required minimum, which can be lent out to stimulate economic activity or held to meet future needs.

Create Money

The process by which central banks or monetary authorities increase the money supply.

Deposit Account

A deposit account is a bank account that allows the holder to deposit and withdraw money, often earning interest, including savings accounts, checking accounts, and other transaction accounts.

Liabilities

Financial obligations or debts that a company or individual owes to others, which must be paid back in the future.