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governments must disclose information about investment risks in which of the following categories? group of answer choices credit risk. custodial credit risk. foreign currency risk. all of the above.

User Max Morrow
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Final answer:

Governments must disclose information about credit risk, custodial credit risk, and foreign currency risk when reporting on investment risks.

Step-by-step explanation:

When considering the types of investment risks governments must disclose, the categories include credit risk, custodial credit risk, and foreign currency risk. Governments have to be vigilant about these risks, particularly when there's a high inflow of short-term foreign investment in government bonds, which can be rapidly withdrawn in the face of negative economic news. This can lead to a substantial risk of capital flight, potentially destabilizing the country's financial system.

User Niloofar
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