A Business Takes a Risk by Electronically Storing Its Customers

question 42

True/False

A business takes a risk by electronically storing its customers' credit account numbers.

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Definitions:

London Interbank Offer Rate

LIBOR; a benchmark interest rate at which major global banks lend to one another in the international interbank market for short-term loans.

Covered Interest Arbitrage

A trading strategy in which an investor uses a forward contract to hedge against exchange rate fluctuations, exploiting the interest rate differentials between two countries.

Uncovered Interest Parity

A financial theory suggesting that expected differences in interest rates between two countries will equal the expected change in exchange rates between their currencies.