Task# 6. Answers risk

Topic-16: “Investment risks and ways to reduce them”

Task# 16.1

ANSWERS

RISK

1. 
   
   Investment risk
   is a danger, probability of a loss.
   
2. 
   
   reef
   is the probability event , resulting in which participants of investment activity will not get their planned profit completely or lose both the profit and the initial investment.
   
3. 
   
   Pure risk
   A Word “risk” comes from the Spanish-Portuguese and means ”.
   
4. 
   
   Speculative risk
   
   Currency risk
   
   Credit risk
   imply the possibility of a negative or no results. These risks include the following risks: force majeure, environmental, political, transportation and part of the commercial risks (economic, industrial, commercial). are expressed in the opportunity to receive both positive and negative results. These risks include financial risks, which are part of commercial risks. is the risk of foreign exchange losses related to the change of one currency against another, during the foreign credit and other foreign exchange transactions.
   
5. 
   
   Interest rate risk
   - the risk of non-payment by the borrower of loan and interest owed to the lender. Also, it is a risk in which the issuer of debt securities will be unable to pay interest on it or the main amount of the debt.
   
6. 
   
   Force major risk
   
   Diversification
   is the risk of losses by commercial banks, credit institutions, investment and other financial institutions as a result of higher interest rates paid by them on borrowed funds then interest rates on loans granted. Probability of losses owing to earthquakes, floods, a tsunami, etc. belongs to .
   
7. 
   is a method distribution of investments by various objects of investment, by increasing the range of products, the expansion of credit or financial portfolio, the distribution of investments in different sectors of the economy, the recipient countries.