16. Operational risk includes which of the following? A) Failure of bank's computer system B) Closure of a bank for three months due to flooding from a major hurricane C) Embezzlement of funds of a bank by a teller of the bank D) Closure of a bank for two weeks due to a fire from a lightening strike E) All of the above are example of operational risk 17. A financial institution that has ready access to immediately spendable funds at reasonable cost at precisely the time those funds are needed is: A) Risk free B) Liquid C) Efficient D) Profitable E) None of the above 18. The two most pressing demands for liquidity from a bank come from, first, customers withdrawing their deposits and, second, from: A) Credit requests from those customers the bank wishes to keep B) Checks being cashed at local stores and directly from the bank C) Demands for wired funds from correspondent banks. D) Legal reserve requirements set by the Federal Reserve Board, E) None of the above 19. A bank expects in the week about to begin $30 million in incoming deposits, $20 million in deposit withdrawals, S15 million in revenues from the sale of nondeposit services, $25 million in customer loan repayments, $5 million in sales of bank assets, $45 million in money market borrowings, $60 million in acceptable loan requests, $10 million in repayments of bank borrowings, $5 million in cash outflows to cover other operating expenses, and $10 million in dividend payments to its stockholders. This bank's net liquidity position for the week is: A) $30 million B) $20 million C) $10 million D) $15 million E) None of the above