Which of the Following Statements BEST Describes How the Automated

question 105

Multiple Choice

Which of the following statements BEST describes how the Automated Clearing House Network (ACH) maintains its integrity as a processor of electronic payments?

• A) The ACH network is an institution within the Federal Bank System and is regulated by strict government standards.
• B) The ACH network is a for-profit company and is regulated by its need to make a profit, which it can only do by strictly regulating itself.
• C) The ACH network is a financial institution and is thus regulated by its obligations to its investors.
• D) The ACH network is a not-for-profit association which launched the Accredited ACH Professional program and established the system's operating rules.
• E) The ACH network is a professional organization to which all financial institutions are obligated to contribute resources and is regulated by the interests of these institutions.

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Definitions:

Impairment Loss

The amount by which the carrying value of an asset exceeds its recoverable value, necessitating a write-down of the asset’s value on the balance sheet.

IFRS

International Financial Reporting Standards, which are a set of accounting rules used globally to prepare and present financial statements.

Foreign Currency Transaction

A business operation involving the exchange of currencies from two different countries.

Spot Rate

The current market price at which a particular currency can be bought or sold for immediate delivery.