The Use of Standard Settlement Instructions (SSI's) Is Strongly Encouraged

question 579

Multiple Choice

The use of standard settlement instructions (SSI's) is strongly encouraged because:

• A) it reduces operational risk
• B) it splits differences arising from failed settlement between the two counterparties
• C) it removes the need for sending out SWIFT confirmations
• D) the use of SSI's secures the trading on more secure platforms

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Definitions:

Replacement Cost

The current cost to replace an asset with a similar one of equivalent utility and quality, without considering depreciation.

Selling Price

The amount of money for which a product or service is sold to customers.

Insurance Expense

Insurance expense refers to the cost incurred by an entity to obtain coverage against various risks, recorded as an expense in the financial statements.

Ending Inventory

The total value of a company's merchandise that has not been sold at the end of an accounting period.