Which risk do experts generally agree is the most important for firms and why?
A)Economic risks because the economy is a primary determinant in the success of a firm.
B)Currency risks because all firms deal in currencies.
C)Transaction risks because transactions are where firms make their profits or suffer their losses.
D)Interest rate risks because interest rates affect firms in a number of different ways.

Question

Quizplus · Accepted Answer

Interest rate risk is generally considered the most important risk for firms because it affects many aspects of their operations, including borrowing costs, investment returns, and access to capital. Fluctuations in interest rates can have a significant impact on a firm's profitability and overall financial health. Firms need to carefully manage their exposure to interest rate risk in order to protect themselves from adverse market conditions.

Which Risk Do Experts Generally Agree Is the Most Important