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CTP · Question #166

(Topic 2) Which of the following statements is typically true about a net settlement system?

The correct answer is A. It significantly reduces the total cost of transfers. See the full explanation below for the reasoning.

Question

  • (Topic 2)

Which of the following statements is typically true about a net settlement system?

Options

  • AIt significantly reduces the total cost of transfers.
  • BParticipants obtain improved payment terms from suppliers.
  • CReceivables and payments are continuously settled 1-to-1.
  • DAn independent third party determines the settlement dates.

How the community answered

(33 responses)
  • A
    76% (25)
  • B
    15% (5)
  • C
    3% (1)
  • D
    6% (2)

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