When the stock market is depressed, tock transactions tend to decline, causing a reduction in business for securities firms.This is an example of ____ risk.
A)interest rate
B)credit
C)market
D)exchange rate

Question

Quizplus · Accepted Answer

The scenario described is an example of market risk, which refers to the risk of investment losses due to external economic factors such as changes in financial markets, economic conditions, and political events. When the stock market is depressed, it can negatively impact the business of securities firms, leading to a reduction in stock transactions and potential losses for investors. Market risk is inherent in most types of investments and cannot be controlled by the investors.

When the Stock Market Is Depressed, Tock Transactions Tend to Decline