Assignment 4

Assignment 4 - Adam Ohanesian Assignment #4 4/20/2011 First...

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Adam Ohanesian Assignment #4 4/20/2011 First I will provide a description of the indicators used for the Global Financial Stability Map. Credit risk is the risk of loss of principal or loss of a financial reward from a borrowers failure to repay or meet a contractual obligation. Emerging markets risk is the risk of investing with a nation with social or business activity in the process of rapid growth and industrialization. Market liquidity risk is the risk in an assets ability to be sold without causing a major move in the price and with minimal loss of value. Risk appetite is the amount and type of risk an organization is prepared to pursue. Monetary and financial risk is the risk that a company will not have enough cash flow to meet obligations. Macroeconomics risk is the risk taking that will affect the unemployment, income, GDP and inflation to name a few. The map indicates the further away from the center the markings, the higher the risk, easier money and financial conditions, or higher risk appetite. Market and liquidity risks did not
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Assignment 4 - Adam Ohanesian Assignment #4 4/20/2011 First...

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