Which of the Following Is a Component of the Evidence

question 22

Multiple Choice

Which of the following is a component of the evidence square?

• A) Rationalization
• B) Perceived pressure
• C) Personal observation
• D) Perceived opportunity

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Definitions:

Default Risk

The potential risk that an issuer of a bond or other debt security will be unable to make principal and interest payments when due.

Collateral Trust Bond

A type of bond that is secured by a pledge of collateral, typically securities, placed under the trust of a third party.

Securities

Financial instruments representing ownership (stocks), a debt agreement (bonds), or rights to ownership (derivatives) that can be bought and sold in financial markets.

Equipment

Physical assets used in the operation of a business, including machinery, tools, and vehicles.