Political risk is most accurately defined as the:
  A. risk that a foreign government, acting in concert with its central bank, will limit or prevent domestic borrowers from repaying debt.
  B. relationship between the constitution of a country and the means by which it is enforced.
  C. economic and financial risk factors associated with a country as distinctly separate from those of the borrower.
  D. risk of loss due to inadequate monitoring systems, management failure, defective controls, fraud, and/or human errors.
  Answer:B
  Political risk is the relationship between the constitution of a country and the means by which it is enforced. In some countries, the constitution is held in high esteem, while in others the constitution is used as a vehicle for governments to achieve their goals, not the wants and needs of its citizens.