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CTP · Question #828
CTP Question #828: Real Exam Question with Answer & Explanation
The correct answer is B. The bank imposed a guidance line of credit on the account.. See the full explanation below for the reasoning.
Question
- (Topic 9) A U.S. company has a secured committed line of credit of $5.5 million and has an available balance of $4 million. The company successfully transmitted a $5.5 million wire transfer instruction out to the bank via SWIFT. The bank contacted the company and informed it that the wire transfer would not be processed. What is the MOST LIKELY reason the bank gave the company?
Options
- AWires exceeding $5 million cannot be transmitted using SWIFT.
- BThe bank imposed a guidance line of credit on the account.
- CThe company exceeded its compensating balance requirement.
- DThe bank refused funding on the company's discretionary line of credit.
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