ACI
3I0-013 · Question #185
The use of netting in foreign exchange dealings has increased because it reduces:
The correct answer is D. Interbank payments, counterparty credit risk exposure, as well as the amount of capital. See the full explanation below for the reasoning.
Question
The use of netting in foreign exchange dealings has increased because it reduces:
Options
- AThe volume of confirmations that have to be sent to the counterparties
- BForeign exchange dealing limits and the currency risk exposure of the banks
- CThe potential foreign exchange trading losses incurred by banks
- DInterbank payments, counterparty credit risk exposure, as well as the amount of capital
How the community answered
(37 responses)- A3% (1)
- B3% (1)
- C11% (4)
- D84% (31)
Community Discussion
No community discussion yet for this question.