The Risk That an FI May Not Have Enough Capital

question 23

True/False

The risk that an FI may not have enough capital to offset a sudden decline in the value of its assets is called operational risk.

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Definitions:

Butter

A dairy product made from churning cream or milk, containing a high percentage of fat and used as a spread or in cooking.

Guns

Firearms designed to discharge projectiles at high velocities, commonly associated with defense, hunting, and sports.

Price

The fiscal valuation presumed, demanded, or paid out in purchase of a product.

Bundle

A combination of goods or services that are considered together as a single aggregate.