ACI
3I0-013 · Question #41
Which of the following statements best describes collateral?
The correct answer is A. Liquid assets pledged by one or both counterparties to the other to reduce credit risk. See the full explanation below for the reasoning.
Question
Which of the following statements best describes collateral?
Options
- ALiquid assets pledged by one or both counterparties to the other to reduce credit risk
- BDeposits placed by a commercial bank with a central bank tofulfillreserve asset ratios
- CAny deposit placed by an institution with another institution of a lower credit rating
- DAny cross border payment of currency
How the community answered
(46 responses)- A76% (35)
- B13% (6)
- C7% (3)
- D4% (2)
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