GK
BUSINESS MANAGEMENT
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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unemployment rates, interest rates, stock market
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loss of business partners, decrease in customer confidence
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overall system failures, product distribution failures
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robbery, embezzlement, computer crimes, vandalism, job related illness and injuries
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weather threats, diseases, accidents
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Detailed explanation-1: -What are some types of market risk? The most common types of market risk include interest rate risk, equity risk, commodity risk, and currency risk.
Detailed explanation-2: -When the unemployment rate is high, the Fed decreases the interest rate, which in turn increases the stock market prices.
Detailed explanation-3: -Higher rates alter the equity investment landscape One is that it could affect future earnings growth for U.S. companies. “As the Fed tightens interest rates, we can expect a decline in economic growth, ‘’ says Freedman. In fact, GDP growth slowed considerably in 2022, growing at 2.1% (compared to 5.9% in 2021).
Detailed explanation-4: -Market risk is the risk of losses on financial investments caused by adverse price movements. Examples of market risk are: changes in equity prices or commodity prices, interest rate moves or foreign exchange fluctuations.