The Risk of Direct or Indirect Loss Resulting from Inadequate

question 50

Multiple Choice

The risk of direct or indirect loss resulting from inadequate or failed internal processes, people, and systems, or from external events is called

• A) solvency risk.
• B) interest rate risk.
• C) credit risk.
• D) operational risk.
• E) systemic risk.

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Definitions:

Dollar Value

The worth or purchasing power of one United States dollar in terms of goods or services.

Goods and Services

The products (goods) and activities (services) that are produced and sold to satisfy human wants and needs.

Law of Comparative Advantage

A principle that states that countries or individuals gain by producing goods for which they have a lower opportunity cost relative to other producers, leading to more efficient global resource allocation.

Economic Goods

Products or services that have a price and are consumed by individuals or groups to satisfy needs or wants.