A Small Local Bank Failed Because of a Housing Market

question 76

Multiple Choice

A small local bank failed because of 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)insolvency risk

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Definitions:

Direct Labour-Hour

A measure of the amount of time a worker spends on a specific task or production activity.

Raw Materials Purchased

The total cost of primary materials acquired for use in the manufacturing process within a specific accounting period.

Direct Materials

The raw materials that are directly used in the production of a product, easily traceable to that product.

Cost of Goods Manufactured

The total production cost incurred by a company to manufacture products in a specific period, including costs of materials, labor, and overhead.