Which One of the Following Is Not a Risk Associated

question 76

Multiple Choice

Which one of the following is not a risk associated with cash?

• A)Susceptibility to error because of the large volume of transactions.
• B)Susceptibility to fraud by misstatement.
• C)Susceptibility to poorly developed automated systems with strong audit trail requirements.
• D)Susceptibility to fraud by theft.

---

Definitions:

Daily Settlement

The process of settling trades at the end of each trading day, including the calculation of gains and losses.

Maintenance Margin

The minimum amount of equity that must be maintained in a margin account after a purchase has been made, in order to keep the account open.

Trader's Margin

The amount of equity contributed by a trader as a percentage of the current market value of the securities held in a trading account.

Established Value

The perceived worth or market value of an asset or company that has been recognized by investors or markets.