Which of the Following Would Be an Example of Operational

question 75

Multiple Choice

Which of the following would be an example of operational risk?

• A)A robber steals $250,000 from the bank locker.
• B)An out-of-date computer system causes the bank to lose $750,000.
• C)A bank is forced to sell $1,000,000 in loans,at a loss,in order to meet the needs of depositors.
• D)A $500,000 loan that the bank has made has been deemed uncollectible.
• E)None of the examples are of operational risk.

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Definitions:

Fraudulent Returns

The act of dishonestly returning goods to a store for a refund or exchange without legitimate reason.

Warranty Claims

Requests made by consumers to manufacturers or sellers seeking repair, replacement, or compensation for products that failed to perform as guaranteed.

Consumer Bill of Rights

A set of principles designed to protect the rights of consumers, covering the right to safety, to be informed, to choose, and to be heard.

Copyright Act

Legislation that protects the original works of authors, composers, and creators by granting them exclusive rights to their works.