When the Computer System Checks the Validity of a Customer

question 12

Multiple Choice

When the computer system checks the validity of a customer number or whether a customer has reached their credit limit is an example of a(an) _____.

• A)internal audit control
• B)internal system control
• C)computer application control
• D)systems application control

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Definitions:

Bond Prices

The amount of money required to purchase a bond, which can fluctuate based on interest rates, credit quality, and other factors.

Duration

A financial metric that calculates the weighted average time until a bond or a portfolio of bonds pays out its cash flows, used to assess interest rate risk.

Effective Maturity

The average time until a bond is repaid, considering possible calls or prepayments, which might alter the time frame for return on investment.

Weighted Average

A calculation that takes into account the varying degrees of importance of the numbers in a data set, often used in financial analyses to find an average value wherein each data point can carry a different weight.