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3I0-012 · Question #351

3I0-012 Question #351: Real Exam Question with Answer & Explanation

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Question

What is settlement risk in FX?

Options

  • AThe risk of failure of a payments or settlement system
  • BThe risk that only one side of an exchange of currencies will be made
  • CThe risk of payments `gridlock' in a real-time gross settlement system
  • DThe risk that default by a counterparty before the value date means you have to replace the defaulted

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