Q. Which of the following terms is not used in banking and Finance? A. Capital gain B. Blue Chip C. Market risk D. Stare decisis

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Answer: D. Stare decisis

Except “Stare decisis” which is a legal term, all are used in banking and finance.

Capital gain: Any profit or gain that arises from the sale of a ‘capital asset’ is a capital gain.

Blue Chip, often referred as Blue Chip Stocks, are the shares of very large and well-recognised companies with a long history of sound financial performance.

Market risk is the fluctuation of returns caused by the macroeconomic factors that affect all risky assets. It is also referred to as systematic risk or non-diversifiable risk.

Stare decisis is Latin for “to stand by things decided.” In short, it is the doctrine of precedent. Courts cite to stare decisis when an issue has been previously brought to the court and a ruling already issued.

 


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