A Small Local Bank Failed Because a Housing Market Collapse

question 63

Multiple Choice

A small local bank failed because a housing market collapse following the departure of the area's largest employer.What type of risk applies to the failure of the institution?

• A)Firm-specific risk.
• B)Technological risk.
• C)Operational risk.
• D)Sovereign risk.
• E)Insolvency risk.

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Definitions:

Consolidation

The process by which memories become stable in the brain after their initial acquisition, often occurring during sleep.

Retention

The ability to keep or hold information in memory.

Memory

The faculty of the mind by which information is encoded, stored, and retrieved when needed, allowing past experiences to influence future behavior and decision-making.

Information-Processing Model

A framework that compares human cognition to the way computers process information, emphasizing stages of input, processing, and output.