A retail firm houses large amounts of customer credit card data in its systems. It will have a higher likelihood of which risk type from external forces trying to gain access to that data?

• A.Reputational risk
• B.Operational risk
• C.Liquidity risk
• D.Cyber risk

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A large retailer is preparing to accept credit cards and anticipates monthly credit card sales of $1,000,000. If the terms with the acquiring bank include bundled allocated fees of 6% and the retailer wishes to delay fee payment as long as possible, what should the retailer do?

• A.Delay funds transfer to card-issuing banks.
• B.Receive net settlement.
• C.Accept gross settlement.
• D.Place a hold on consumer credit limits.

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A company's credit agreements or loan covenants may require:

• A.outsourcing of the claims approval and payment process to an insurance company.
• B.minimum ratings for insurance carriers.
• C.risk management staff to work directly with underwriters to reduce commission payments.
• D.high deductible levels and risk retention in order to minimize premium payments.

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If a company has $126 million in debt at an average cost of 7% and $234 million in equity at a cost of 11%, what is its weighted average cost of capital, assuming a marginal tax rate of 35% and a risk-adjusted rate of 13%?

• A.10.9%
• B.9.6%
• C.10.0%
• D.8.7%

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Which of the following statements is true about lockbox network systems?

• A.Consolidated remittance data are generated from multiple collection points.
• B.A bank or third party receives, processes, and deposits currency primarily.
• C.A company processes and prepares its own deposits.
• D.Local operating units receive funds over the counter and prepare deposits.

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