单选题 Which of the following circumstances is an example of event risk?

A. A currency devalues due to foreign exchange market forces.
B. A local government regulatory agency introduces more stringent clean-water requirements that will significantly reduce the cash flow of an area paper mill.
C. The U. S. Federal Reserve unexpectedly increases interest rates by 100 basis points.

【正确答案】 B

【答案解析】A local government regulatory agency introducing more stringent clean-water requirements that will significantly reduce the cash flow of an area paper mill is an example of regulatory risk, which is a type of event risk. The impact of regulatory risk can be long-term, in that the company may be unable to pass on the increased cost to customers.