AFP
CTP · Question #227
(Topic 3) A bank is evaluating the credit risk for a company seeking to optimize costs and originate a high volume of outgoing ACH payments. What is the BEST provision the bank should establish to…
The correct answer is A. An intraday credit limit for the company. See the full explanation below for the reasoning.
Question
- (Topic 3)
A bank is evaluating the credit risk for a company seeking to optimize costs and originate a high volume of outgoing ACH payments. What is the BEST provision the bank should establish to control its credit exposure?
Options
- AAn intraday credit limit for the company
- BA limit on the number of items processed per day
- CAn overdraft facility for the company
- DA standby letter of credit for the company
How the community answered
(27 responses)- A81% (22)
- B4% (1)
- C11% (3)
- D4% (1)
Community Discussion
No community discussion yet for this question.