ACI
3I0-012 · Question #722
Market participants should, where activity justifies it, aim to reduce settlement and related credit risk on currency transactions by:
The correct answer is C. Establishing legally binding bilateral netting agreements with counterparties or participating in a multilateral. See the full explanation below for the reasoning.
Question
Market participants should, where activity justifies it, aim to reduce settlement and related credit risk on currency transactions by:
Options
- AEstablishing realistic daylight limits for counterparties.
- BMonitoring all payments to counterparties who are known to be experiencing difficulties.
- CEstablishing legally binding bilateral netting agreements with counterparties or participating in a multilateral
- DSeeking pre-payment.
How the community answered
(18 responses)- A6% (1)
- B11% (2)
- C78% (14)
- D6% (1)
Community Discussion
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