If the Reserve Bank were to change from an expansionary to contractionary monetary policy, this would be an example of

Question

Quizplus · Accepted Answer

The change in monetary policy by the Reserve Bank would impact the overall economy, making it an example of systematic risk. This refers to risks that affect the entire market or economy, rather than specific individual assets or companies. Diversification risk, independent risk, and unsystematic risk relate to specific assets or companies and would not be applicable in this scenario.

If the Reserve Bank Were to Change from an Expansionary