The Risk That Arises from the Failure of Parties to Complete

question 91

Multiple Choice

The risk that arises from the failure of parties to complete and resolve a transaction is called:

• A) Herstatt risk.
• B) default risk.
• C) settlement risk.
• D) market risk.

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Definitions:

Construction Corollary

A principle in George Kelly's personal construct theory that suggests people anticipate events by the meanings they place on their experiences.

Compatible Groups

Clusters of individuals or entities that exhibit a high degree of similarity or cohesion in preferences, values, or characteristics, facilitating harmonious interactions.

Construe Events

Interpreting or making sense of events by assigning meanings and significance to them.

Dissimilarities

The state or condition of not being alike, illustrating differences between entities in various aspects.