Risk that is related to the uncertainty about interest rate movements is called

A) default risk.
B) interest-rate risk.
C) the problem of moral hazard.
D) security risk.

B

Economics

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Suppose that you and your four siblings are given an opportunity to purchase a video rental store. Each of you would put up $50,000 . The revenue from the store is expected to remain $350,000 per year for the next several years

The costs (not including the opportunity costs of your investment) of operating the store are expected to remain steady at $320,000 for the next several years. The current market rate of interest is 5 percent per year. Should you go in on this deal? Explain.

Economics

International policy coordination refers to

A) central banks in major nations acting without regard to the global consequences of their policies. B) central banks in major nations pursuing only domestic objectives. C) central banks adopting policies in pursuit of joint objectives. D) central banks all adopting identical policies.

Economics