The changes in a firm's cash flow that result from changes in macroeconomic conditions are called:
A)business risk.
B)country risk.
C)currency risk.
D)economic risk.

Question

Quizplus · Accepted Answer

Economic risk refers to the changes in cash flow that are caused by changes in macroeconomic conditions such as inflation, interest rates, and economic growth. This type of risk is typically beyond the control of the firm and can have a significant impact on its financial performance. Business risk refers to the risk of not being able to generate sufficient profits to cover the costs of doing business, while country risk refers to the risks associated with investing in a particular country such as political instability or regulatory changes. Currency risk involves the risks that arise from fluctuations in exchange rates when a firm engages in transactions involving foreign currencies.

The Changes in a Firm's Cash Flow That Result from Changes