The possibility that the Bank of Canada may raise the prime rate is an example of

Question

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Interest rate risk refers to the potential impact of changes in interest rates on an investment. In this case, the Bank of Canada raising the prime rate would increase borrowing costs for businesses and individuals, potentially affecting the profitability and performance of investments. Political risk, exchange rate risk, and monetary risk involve different factors and scenarios.

The Possibility That the Bank of Canada May Raise the Prime