Risk Capital Is Intended to Ensure That an Institution Can

question 350

Multiple Choice

Risk capital is intended to ensure that an institution can:

• A) Survive a liquidity crisis
• B) Absorb credit losses
• C) Absorb any type of unexpected loss
• D) Absorb any type of expected loss

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Definitions:

Conjugation

(1) A sexual process in ciliate protists that involves exchange of haploid nuclei with another cell. (2) A mechanism for DNA exchange in bacteria that involves cell-to-cell contact.

Pathogenic

Capable of causing disease; refers to microorganisms or agents that can produce an illness when they invade a host organism.

Decomposers

Organisms that break down dead or decaying organisms, turning organic material into simpler substances and recycling nutrients in the ecosystem.

Photosynthesize

The process by which green plants, algae, and some bacteria convert light energy into chemical energy stored in glucose, using carbon dioxide and releasing oxygen.