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Financial Markets Quiz (Risk, Increase, Rate)

If a balance in an interest-bearing account grows by 5% per year, after 5 years, the balance will be 25% larger.

An increase in the interest rate causes the price of discount bonds to rise.

Creditors benefit from an unexpected increase in the inflation rate.

Which of the following is a correct statement concerning risk?

The risk premium for an investment.....

When many industries perform poorly due to a recession, this is an example of:

Idiosyncratic risks are risks that are....

Diversification is the principle of

Risks that are unique to specific people, assets, or firms, are called:

Systematic risk is a form of risk that is:

Tagged as: risk
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