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Which of the Following Is NOT a Part of Tests

question 68

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Which of the following is NOT a part of tests of control?


Definitions:

Bank Panics

A situation in which a large number of bank customers withdraw their deposits simultaneously due to fears that the bank will become insolvent.

Deterrent

A factor or policy intended to discourage certain behaviors by instilling fear of the consequences.

Fractional Reserve

A banking system in which banks hold a fraction of the deposits as reserves, lending the rest to generate profit.

Reserves

Assets kept on hand by a bank or financial institution to meet emergency needs or regulatory requirements.

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