Which of the Following Statements Is True

question 76

Multiple Choice

Which of the following statements is true?

• A)Exchange settlement accounts allow each FI to have settlement for transactions that occur by the adjustment of credit balances held with the central bank.
• B)The central bank acts purely as a settlement agent.
• C)The central bank is not exposed to any credit risk.
• D)All of the listed options are correct.

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Definitions:

Persuasive Authority

Persuasive authority refers to sources of law, such as cases from other jurisdictions, that a court may consider but is not obliged to follow.

Court Opinion

A written statement by a judge or a court of the reasoning and the principles of law used in reaching a decision of a case.

Law Review

An academic journal focusing on legal issues, typically run by students at a law school, publishing scholarly articles on various legal topics.

Reporter

A book in which court cases are published or reported.