Q763
Political constancy is chief aspect concerning
A.
exchange risk
B.
systematic risk
C.
non-systematic risk
D.
country risk
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
Political constancy is chief aspect concerning country risk. Country risk is the risk that a foreign government will default on its bonds or other financial commitments. Country risk also refers to the broader notion of the degree to which political and economic unrest affect the securities of issuers doing business in a particular country.