AFP
CTP · Question #309
(Topic 4) XYZ Bank would like to conduct some foreign exchange transactions with JKL Bank. JKL isn't the most liquid and could have some credit risk. XYZ Bank should suggest which of the following…
The correct answer is D. Continuous Linked Settlement. See the full explanation below for the reasoning.
Question
- (Topic 4)
XYZ Bank would like to conduct some foreign exchange transactions with JKL Bank. JKL isn’t the most liquid and could have some credit risk. XYZ Bank should suggest which of the following in order to eliminate risk?
Options
- APre-authorized draft
- BStraight-through processing
- CForward rate contract
- DContinuous Linked Settlement
How the community answered
(31 responses)- A10% (3)
- B6% (2)
- C3% (1)
- D81% (25)
Community Discussion
No community discussion yet for this question.