The type of risk in which payments are interrupted by the intervention of foreign governments is considered as ____________?
Correct answer: D. country risk
- A. channel risk
- B. globalization risk
- C. state risk
- D. country risk
Explanation
Country risk is the possibility that a foreign government or political environment will prevent or disrupt payments. It is broader than a general globalization or channel risk.
Report an error
The more specific you are, the faster it gets fixed. A source beats an opinion.
Prefer email? support@testustad.com
About Business Finance
Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
Practise Business Finance
975 free Business Finance MCQs from Management Sciences, each with the correct answer and an explanation. Unlimited attempts, no account needed.
Exams that ask Management Sciences questions like this
Management Sciences is on 2 papers prepared for on TestUstad, and all of them draw the same bank, so this question is worth knowing for every one of them.
More Business Finance questions
The legal document required by Securities Exchange Commission stating associated risks and detailed description of issues is classified as ______________?
The risk stating the assets are sold at low prices because of sudden surge in withdrawals of liabilities is classified as ___________?
The transfer of financial instruments from suppliers of funds to users of funds without any intermediary in between is classified as _____________?
The type of market in which securities with less than one year maturity are traded, is classified as ___________?
The risk arises when the technology system may got malfunction is classified as ___________?
The example of derivative securities include ______________?