question What category of risk is associated with the potential for financial loss or instability in the market

What term refers to the practice of spreading investments across different asset classes to reduce risk?

A. Leverage
B. Asset Allocation
C. Financial Modeling
D. Profit Maximization

What is the process of converting one currency into another for trading and investment purposes in International Finance?

A. Forex Trading
B. Global Capital Flows
C. Currency Exchange Rates
D. Economic Globalization

What term refers to the entrepreneurial pursuit of creating and running one's own business?

A. Entrepreneurship
B. Savings Strategies
C. Budgeting
D. Emergency Fund

What financial tool assesses the efficiency of a company in using its assets to generate sales?

A. Profit Margin
B. Asset Turnover
C. Return on Investment
D. Earnings per Share

What aspect of personal finance involves actively managing and optimizing one's credit card usage for financial benefits?

A. Credit Card Optimization
B. Credit Score Improvement
C. Debt Consolidation
D. Savings Strategies

Which managerial accounting technique involves comparing actual performance to planned performance to identify differences?

A. Decision Making
B. Performance Metrics
C. Variance Analysis
D. Cost Allocation

Which financial institution pools funds from multiple investors to invest in a diversified portfolio of stocks, bonds, or other securities?

A. Hedge Fund
B. Mutual Fund
C. Investment Bank
D. Central Bank

The Net Margin is calculated as:

A. (Revenue - Cost of Goods Sold) / Revenue
B. Net Income / Revenue
C. Operating Income / Revenue
D. Total Expenses / Net Income

What term describes the act of arranging financial affairs to minimize tax liability legally?

A. Tax Planning
B. Tax Evasion
C. Tax Compliance
D. Tax Refund

What term is used to describe the analysis of potential risks to determine their nature and characteristics?

A. Risk Analysis
B. Risk Identification
C. Risk Mitigation
D. Compliance Risk