The Probability and Impact Rating System (PAIRS)

question 1

Multiple Choice

The Probability and Impact Rating System (PAIRS) :

• A)determines the response APRA should make to the outcomes of PAIRS ratings.
• B)determines the response APRA should make to the outcomes of bank failures.
• C)determines the response APRA should make to the outcomes of financial crisis.
• D)assesses the probability that a regulated institution will fail and the effect such a failure would have on the financial system.

---

Definitions:

Finished Products

Items or goods that have completed the manufacturing or production process and are ready for sale or distribution.

Exchange Process

Activity in which two or more parties give something of value to each other to satisfy perceived needs.

Time Utility

Availability of a good or service when customers want to purchase it.

Perceived Needs

The needs that customers believe they need as identified through their personal perceptions, which may not always align with their actual needs.