The Risk That a Financial Institution May Be Forced to Borrow

question 117

Multiple Choice

The risk that a financial institution may be forced to borrow emergency funds excessive cost to cover its immediate cash needs is known as:

• A)credit risk
• B)liquidity risk
• C)market risk
• D)interest-rate risk
• E)None of the options is correct

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Definitions:

Data Retention

The ability of a storage medium to preserve information over an extended period without loss.

EEPROM

A type of non-volatile memory used in Computers and other electronic devices to store small amounts of data that must be saved when power is removed.

Vehicle Computer System

A network of electronic control units (ECUs) and software within a vehicle that manages various functions, from engine operation to entertainment systems.

PROM

Programmable Read-Only Memory; a type of digital memory that is programmed after the manufacturing process and cannot typically be reprogrammed or erased.