What Type of Risk Would Describe the Failure of a Back

question 5

Multiple Choice

What type of risk would describe the failure of a back office to make adequate margin calls on repo positions?

• A) Credit risk
• B) Market risk
• C) Operational risk
• D) Settlement risk

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Definitions:

Power Distance

A cultural aspect indicating the degree to which individuals in positions of lesser power within organizations and institutions accept and assume an unequal distribution of authority.

Elastic Time

A cultural concept where time is seen as flexible, with a focus on accomplishing tasks rather than adhering to a strict schedule.

Protestant Work Ethic

A concept in sociology that attributes hard work, frugality, and diligence to a Calvinist value system prevalent in areas of Protestant reformation.

Dharma

A key concept in Indian philosophy and religion, representing duty, righteousness, and the moral law that guides an individual's conduct.