Operating Risk Is

question 13

Multiple Choice

Operating risk is:

• A)the risk of loss resulting from inadequate or failed internal processes, people and systems, or external events
• B)the chance of loss arising from movements in market variables
• C)the possibility of an ADI being unable to meet its financial obligations as they fall due
• D)the risk of a borrower defaulting on their scheduled loan payments
• E)the risk that an ADI cannot maintain sufficient funds to cover its loans.

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Definitions:

Structural Cue

Visual or auditory information that helps to understand the organization or structure of an environment or object.

Declarative Memories

Memories that are retrievable through conscious effort, involving facts and episodes.

Nondeclarative Memories

Memories that are gained through experience and practice, such as skills or habits, that we are not consciously aware of.

Implicit Memories

Memories that are formed and stored without conscious effort, often influencing behaviors and skills without our direct awareness.