Which of the following descriptions most accurately reflects the risk position of an ARM lender in comparison to that of a FRM lender? 
Definitions:
Retained Earnings
The portion of net income not distributed to shareholders but reinvested in the business or kept as reserve.
Operational Funds
Money that is available for daily business activities, including salaries and maintenance, ensuring smooth operations.
Full Capacity Sales
Full capacity sales refer to the maximum sales level that a company can attain with its current production capacity and resources, without additional investment.
Net Income
A company's revenue minus all its expenses and taxes equals its total income.
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