Physical Vaulting Refers to the Control Procedure Involving the Capture

question 21

True/False

Physical vaulting refers to the control procedure involving the capture of transactions that by-passed the firewall.

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Definitions:

Forward Exchange Contract

A financial agreement to exchange a specified amount of one currency for another currency at a future date and at a predetermined exchange rate.

Futures Contract

A standardized legal agreement to buy or sell something at a predetermined price at a specified time in the future, often used as a financial instrument for hedging or speculation.

Option Contract

A contract which gives the holder the right, but not the obligation, to buy or sell an underlying asset at a specified price within a specified time.

Financial Instruments

Contracts that give rise to both a financial asset of one entity and a financial liability or equity instrument of another entity.