You Have Prepared the Following Economic Capital Table for the Next

question 571

Multiple Choice

You have prepared the following economic capital table for the next ALCO meeting: For which of the following risks should you consider actions?

• A) credit risk
• B) interest rate risk
• C) liquidity risk
• D) currency risk

---

Definitions:

Thorstein Veblen

An American economist and sociologist known for his theory of the leisure class and conspicuous consumption.

Consumer Dollar

Refers to the purchasing power of a consumer's money, indicating how much goods or services one dollar can buy.

Services

Economic activities that provide intangible products, such as education, healthcare, and financial and professional services, rather than physical goods.

Income Levels

Categories or ranges of income that differentiate various groups within a society, often used in analyzing economic and social status.