Which one of the following is the risk arising from changes in value caused by political actions?

Question

Quizplus · Accepted Answer

Political risk refers to the risk of changes in value caused by political actions, such as changes in laws, regulations, or government policies. Exchange rate risk relates to changes in value arising from fluctuations in exchange rates between currencies. Translation risk arises from changes in the value of assets or liabilities denominated in a foreign currency due to changes in exchange rates. LIBOR risk is the risk of losses arising from changes in the LIBOR benchmark interest rate, while cross-rate risk refers to the risk of losses arising from changes in exchange rates between two non-U.S. dollar currencies.

Which One of the Following Is the Risk Arising from Changes