Which of the following can be considered an income risk?
A)Recession causing loss of pay to employees working in a particular industry
B)Fall in employee turnover affecting company profits
C)Economic growth resulting in demand-pull inflation
D)Stock market boom encouraging investment in risky assets

Question

Quizplus · Accepted Answer

A recession causing loss of pay to employees working in a particular industry is an income risk because it directly affects the income of the employees in that industry.

B) Fall in employee turnover affecting company profits is not an income risk as it affects the profits of the company rather than the income of individual employees.

C) Economic growth resulting in demand-pull inflation is not an income risk as it affects the general price level in the economy rather than the income of individuals.

D) Stock market boom encouraging investment in risky assets is not an income risk as it pertains to investment decisions rather than individual income.

Which of the Following Can Be Considered an Income Risk