7-75 the Major Source of Risk Exposure Resulting from Issuance

question 85

Multiple Choice

7-75 The major source of risk exposure resulting from issuance of standby letters of credit is

• A)technology risk.
• B)interest rate risk.
• C)credit risk.
• D)foreign exchange risk.
• E)off?balance-sheet risk.

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Definitions:

Measuring Device

An instrument used to ascertain the size, quantity, or degree of something.

Predictability

The degree to which a future event or outcome can be forecasted based on present or past data.

Reliability

The degree to which the result of a measurement, calculation, or specification can be depended on to be accurate.

Measurement

The process of obtaining a quantitative description of an attribute or phenomenon, often by comparing it to a standard unit.