Which of the Following Statements Is NOT True About the Wholesale

question 93

Multiple Choice

Which of the following statements is NOT true about the wholesale payments system?

• A)It has very few participants compared to the retail system.
• B)The main participants are banks and dealers.
• C)Transactions are settled on a deferred net settlement basis.
• D)It transfers funds between exchange settlement accounts of the payer and the payee.
• E)It mainly settles financial markets transactions.

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Definitions:

Financing Statement

A financing statement is a document filed by a creditor to indicate a security interest in the property of the debtor for purposes of establishing priority claims.

Renewal

The process of making something valid for an additional period or restoring it to a fresh condition.

Buyer in the Ordinary Course of Business

A term that describes a purchaser who buys goods in good faith from a seller who routinely deals in such goods, without knowledge that the sale violates the rights of a third party.

Good Faith

Honesty in fact.