________ refers to the possibility of expropriation of assets, changes in tax policy, and the possibility of restrictions on foreign exchange transactions.

A) Default risk
B) Foreign exchange risk
C) Market risk
D) Political risk
E) None of the options are correct.

Expropriation

The act of a government taking privately owned property, often without fair compensation, for the public good.

Foreign Exchange Transactions

Trades between different currencies, involving the exchange of currency from one country for that of another at an agreed rate.

Tax Policy

The set of laws and regulations that govern how taxes are collected, the rates, exemptions, and incentives, impacting individuals and businesses.