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ACI

3I0-012 · Question #351

What is settlement risk in FX?

The correct answer is B. The risk that only one side of an exchange of currencies will be made. See the full explanation below for the reasoning.

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

How the community answered

(38 responses)
  • A
    13% (5)
  • B
    79% (30)
  • C
    3% (1)
  • D
    5% (2)

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