Which of the Following Is NOT an Example of a Precautionary

question 26

Multiple Choice

Which of the following is NOT an example of a precautionary money balance?

• A)currency in a cash register at a department store
• B)an extra $20 bill in the purse of a college student going on her first blind date
• C)a $100 traveler's check, folded and placed behind your driver's license in your wallet
• D)funds deposited in a separate bank account because you may need to replace an aging furnace
• E)an extra $100 in cash withdrawn from your savings account before you take a trip to visit a sick aunt, just in case you find a garage sale along the way

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Definitions:

Positive Correlation

A statistical relationship where two variables move in the same direction, indicating that when one variable increases, the other one also increases, and vice versa.

Risk Mitigation Plan

A strategic approach to identifying, analyzing, and responding to project risks to minimize their impact.

Risk Transfer Plan

A strategy to shift potential risks to a project to another party, usually through insurance or contracts, as a way to mitigate negative impacts.

Risk Acceptance Plan

A strategy where potential risks are acknowledged but deemed manageable or low enough to proceed without additional mitigation measures.