Examveda
Examveda

Type of risk in which payments are interrupted by intervention of foreign governments is considered as

A. channel risk

B. globalization risk

C. state risk

D. country risk

Answer: Option D

Solution(By Examveda Team)

Type of risk in which payments are interrupted by intervention of foreign governments is considered as country risk. Country risk is the risk that a foreign government will default on its bonds or other financial commitments. Country risk also refers to the broader notion of the degree to which political and economic unrest affect the securities of issuers doing business in a particular country.

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