The Risk That an FI May Not Have Enough Capital

question 23

True/False

The risk that an FI may not have enough capital to offset a sudden decline in the value of its assets is called operational risk.

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Definitions:

Petty Cash Account

A small amount of cash kept on hand for minor or incidental expenses, controlled through a fund system to manage small business transactions.

Auxiliary Petty Cash Record

A detailed log used to track the small transactions handled through a petty cash fund, aiding in the reconciliation and management of petty cash.

Petty Cash Voucher

A document used to record small cash payments, detailing the purpose of the payment, the amount, and the person who received the funds.

Dehydration

A condition resulting from excessive loss of body water, impairing normal bodily functions.