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3I0-013 · Question #275

3I0-013 Question #275: Real Exam Question with Answer & Explanation

The correct answer is B. The bilateral limit with the counterparty would have to be adjusted. See the full explanation below for the reasoning.

Question

In settling a money market placing between your dealer and a counterparty, what would be the financial consequences of a payment made one day late?

Options

  • AThe counterparty would cancel the deal
  • BThe bilateral limit with the counterparty would have to be adjusted
  • CThe counterparty would demand interest on the late payment
  • DThere are no adverse financial consequences

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