__________ refers to the possibility of expropriation of assets,changes in tax policy,and the possibility of restrictions on foreign exchange transactions.

Question

Quizplus · Accepted Answer

Political risk refers to the uncertainty and potential downside that arises from changes in government policies or geopolitical events. It includes the possibility of expropriation of assets, changes in tax policy, and restrictions on foreign exchange transactions. Therefore, option D is the correct answer. Option A (default risk) refers to the possibility of a borrower being unable to repay their debt, while option B (foreign exchange risk) is the risk of loss due to fluctuations in exchange rates. Option C (market risk) is the possibility of losses resulting from factors that affect the entire market or a specific asset class.

__________ Refers to the Possibility of Expropriation of Assets,changes in Tax