Question

    The risk that arises from political instability,

    regulatory changes, and economic fluctuations in a particular country that may affect foreign investments is referred to as:
    A Market Risk Correct Answer Incorrect Answer
    B Credit Risk Correct Answer Incorrect Answer
    C Country Risk Correct Answer Incorrect Answer
    D Operational Risk Correct Answer Incorrect Answer
    E Liquidity Risk Correct Answer Incorrect Answer

    Solution

    Country risk refers to the threats investors face due to political and economic uncertainties in a foreign country, impacting returns on investments.

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