All of the Following Are Examples of Operational Risk Except

question 33

Multiple Choice

All of the following are examples of operational risk except:

• A) fraud.
• B) compromised security data.
• C) theft.
• D) business interruptions.
• E) default on a loan.

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Definitions:

Annually Compounded

Refers to the process where interest is added to the principal balance once a year, allowing the interest to earn interest in subsequent years.

Semi-Annually Compounded

The process of calculating interest on a principal amount twice a year, with each compounding period leading to the addition of earned interest to the principal for future calculations.

Compounded Monthly

The practice of adding interest to the principal sum of a loan or deposit, with this process occurring every month.

Quarterly Compounding

The process of generating earnings on an investment's reinvested earnings four times a year.