The Federal Reserve Bank announces a policy of raising interest rates shortly before OMG corporation needs to refinance a large issue of 3 year notes. This is an example of

Question

Quizplus · Accepted Answer

Financial risk is associated with managing money, investments, and financial instruments. In this case, the Federal Reserve Bank's decision to raise interest rates directly impacts OMG corporation's cost of refinancing, making it a financial risk.

The Federal Reserve Bank Announces a Policy of Raising Interest