Vidyalelo
Commerce · Q97

Financial Management

Graduate and Post Graduate · Commerce · question 97

Q97

Political stability is the major factor concerning_______________.

A.
exchange risk
B.
systematic risk
C.
non-systematic risk
D.
country risk
Answer

Answer: Option D

Solution

Answer: Option D
Solution:
Political stability is the major factor concerning country risk. Political stability in this case refers to the lack of real competition for the governing elite. The 'politically stable' system enforces stringent barriers to personal freedoms.