Which of the following is NOT a consequence of climate-related asset devaluation? A) Higher perceived risk B) Decreased cost of capital C) Increased costs of capital D) Potential r... Which of the following is NOT a consequence of climate-related asset devaluation? A) Higher perceived risk B) Decreased cost of capital C) Increased costs of capital D) Potential regulatory restrictions
Understand the Problem
The question is asking to identify which option listed (A, B, C, or D) does not represent a consequence of climate-related asset devaluation. The individual must evaluate the economic impacts associated with asset devaluation caused by climate issues and determine the incorrect option.
Answer
Decreased cost of capital.
The final answer is decreased cost of capital.
Answer for screen readers
The final answer is decreased cost of capital.
More Information
When assets are devalued due to climate-related risks, this typically leads to higher perceived risk and increased costs of capital. Consequently, decreased cost of capital is not a consequence. Climate-related devaluation can also lead to regulatory restrictions to mitigate risks.
Sources
- Addressing Climate-Related Financial Risk Through Bank Capital ... - americanprogress.org
AI-generated content may contain errors. Please verify critical information
