Which of the Following Is True

question 65

Multiple Choice

Which of the following is true?

• A)PAIRS provides APRA with a score-card approach to assessing the risk of FI failure and the impact of any failure.
• B)PAIRS provides APRA with a single rating which incorporates both the probability that the FI will fail and the impact of any failure.
• C)PAIRS provides APRA with a rating that assesses the risk of FI failure.
• D)PAIRS provides APRA with an impact factor that determines what regulatory response needs to be implemented to prevent FI failure.

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Definitions:

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels, used to compare actual performance against what should have occurred at the actual level of activity.

Static Budget

A fixed budget that does not change with the level of activity or production volume, often used for planning purposes.

Level Of Activity

A measurement of the volume of production or operations within a business, which can affect various costs and efficiency metrics.

Flexible Budget

A budget that adjusts or flexes with changes in volume or activity levels.