The Very Large Number of Retail Payment Orders

question 70

Multiple Choice

The very large number of retail payment orders:

• A)exposes receiving institutions to significant settlement risk
• B)includes cash, cheques and EFTPOS
• C)are netted, which greatly reduces the settlement amounts
• D)are settled on a same-day basis.
• E)All of these.

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Definitions:

Accounts

Financial records that track transactions related to a specific asset, liability, equity, revenue, or expense category.

Simple Journal Entry

A basic accounting entry used to record transactions with only one debit and one credit.

Debit

An accounting entry that increases asset or expense accounts or decreases liability, equity, or revenue accounts.

Credit

A financial arrangement where a borrower receives something of value now and agrees to repay the lender at a later date, generally with interest.