Economic risk may result in gain or loss because of changing economic conditions. True or false?

Understand the Problem

The question is asking whether economic risk can lead to both gains and losses as a result of fluctuating economic conditions. This is a true/false statement that addresses the nature of economic risk.

More Information

Economic risk involves the potential for financial losses as well as gains due to changes in economic conditions, such as shifts in market demand, interest rates, or employment trends. This type of risk stems from the fluctuating nature of the economy, impacting investment and financial planning.

Tips

A common mistake is to assume that economic risk only results in losses. It can lead to both gains and losses, depending on the economic conditions.

Sources

• Personal Finance Chapter 21 Cengage | Flash Cards - quizlet.com
• PF Ch. 21-22 - Quizizz - quizizz.com