#1
Which of the following is NOT a factor typically considered in country risk analysis?
Language spoken in the country
ExplanationLanguage is not typically considered in country risk analysis.
#2
Which economic indicator is commonly used to assess a country's ability to repay its debt?
Debt-to-GDP ratio
ExplanationDebt-to-GDP ratio assesses a country's debt repayment ability.
#3
Which of the following is NOT typically considered a sovereign risk?
Market risk
ExplanationMarket risk is not typically classified as sovereign risk.
#4
Which organization provides country risk ratings and analysis?
Standard & Poor's (S&P)
ExplanationStandard & Poor's (S&P) offers country risk ratings and analysis.
#5
Which of the following is a method used to mitigate country risk?
Diversification
ExplanationDiversification is a method to mitigate country risk.
#6
What is the primary goal of country risk analysis?
To accurately assess the potential risks and rewards of investing in a country
ExplanationTo evaluate investment risks and rewards in a country accurately.
#7
Which of the following is an example of political risk in country risk analysis?
Civil unrest
ExplanationCivil unrest exemplifies political risk in analysis.
#8
What is the primary source of data used in country risk analysis?
Government reports
ExplanationGovernment reports serve as the primary data source for country risk analysis.
#9
Which country risk analysis framework categorizes risks into political, economic, social, technological, legal, and environmental factors?
PESTLE analysis
ExplanationPESTLE analysis categorizes risks into various factors for assessment.
#10
Which factor is NOT typically considered in assessing economic risk?
Government stability
ExplanationGovernment stability is not typically assessed in economic risk analysis.
#11
Which theory suggests that investors demand higher returns for higher perceived risks?
Risk-return tradeoff theory
ExplanationRisk-return tradeoff theory explains investors' demands for higher returns with increased risk.
#12
Which term refers to the risk of a government defaulting on its debt obligations?
Sovereign risk
ExplanationSovereign risk refers to the risk of government debt default.
#13
Which theory suggests that investors can achieve optimal portfolios by considering both risk and return?
Modern portfolio theory
ExplanationModern portfolio theory advocates for optimizing portfolios considering risk and return.
#14
Which risk assessment approach focuses on identifying and quantifying all possible risks?
Quantitative risk analysis
ExplanationQuantitative risk analysis aims to identify and quantify all possible risks.
#15
Which of the following is NOT a method of qualitative risk analysis?
Monte Carlo simulation
ExplanationMonte Carlo simulation is a quantitative, not qualitative, risk analysis method.