Which of the Following Statements About Requirements for Dealing with Limit

question 330

Multiple Choice

Which of the following statements about requirements for dealing with limit violations is correct?

• A) Financial institutions have to establish procedures for handling limit breaches that are in accordance with their decision-making hierarchy.
• B) If a partial limit violation does not exceed the overall limit, no reaction is required.
• C) The definition of escalation levels is not required in order to react appropriately to different sorts and intensities of limit breaches.
• D) It is adequate and proper to define reactions only to standard cases of limit violations.

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Definitions:

Cannon's Theory

Also known as Cannon's fight-or-flight theory, it describes the body's automatic response to threatening or stressful situations.

Pleasure Principle

The driving force of the id that seeks immediate gratification of all desires, wants, and needs.

Drive Reduction

A theory in psychology suggesting that behavior is motivated by the desire to reduce internal tension caused by unmet biological needs.

Incentives

Rewards or stimuli that motivate individuals to perform a certain action or exhibit a desired behavior.