Use the Following Graph of the Cost/benefit Model for Risk

question 53

Multiple Choice

Use the following graph of the cost/benefit model for risk analysis to answer the next five questions.

-What does (5) represent?

• A) Total cost
• B) Loss area
• C) Cost of controls
• D) Level of assurance
• E) Optimal point of reasonable assurance D

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Definitions:

U.S. Dollar

The official currency of the United States, used as a standard monetary unit for many international transactions.

Foreign Currencies

Currencies used in international trade and investment, outside of the domestic or home country's currency.

Post Hoc

A logical fallacy where one assumes that because one event followed another, the first event caused the second.

Unemployment Rate

The percentage of the labor force that is jobless and actively seeking employment, a key indicator of economic health.