Which of the following was a consequence of the financial revolution which drastically changed risk management in the 1970s?
a. Managements created separate categories for handling different types of risks.
b. A group of specialists were created who handled risk assessment for the entire organization and reported only to headquarters.
c. Risk analysis was decentralized by concentrating on risks at the division-level.
d. It became easier to assess market risk with the introduction of various new tools of financial management.
B
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Decisions to determine the government's budget are called:
A. fiscal policy. B. structural policy. C. trade policy. D. monetary policy.
Your friend Dimitre tells you that he thinks that his favorite basketball team has a 70% chance of winning the next game. This is an example of
A) an objective probability. B) a subjective probability. C) a risk-averse statement. D) Friedman-Savage preferences.
Which of the following would probably not be considered a natural monopoly?
a. a municipal water company b. the local telephone industry c. the cable television industry d. natural gas and electric companies e. the automobile industry
The sum of the balances in the current and capital accounts in the balance of payments must equal zero
Indicate whether the statement is true or false