Diversification and Fiscal deficit: Difference between pages

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''Risk management.''
''Economics.''
 
When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings).
The process of spreading risk such that no single event can have a catastrophic effect. 
 
Often referred to as 'Don't put all your eggs in the same basket'.
 
In corporate finance the term is often used to mean the process of ensuring that an investment portfolio is constructed such that all possible specific risk (diversifiable risk) is eliminated.
 
 
Diversification is a form of risk reduction.
 


== See also ==
== See also ==
* [[Credit risk diversification]]
* [[Deficit]]
* [[Portfolio]]
* [[Specific risk]]
* [[Matching]]
* [[Cash in the new post-crisis world]]


[[Category:Risk_frameworks]]

Revision as of 14:19, 23 October 2012

Economics. When a government's total expenditures exceed the revenue that it generates (excluding money from borrowings).

See also