As at 2013, Different Payment Systems Exist for the Settlement

question 27

Multiple Choice

As at 2013, different payment systems exist for the settlement of retail and wholesale payment instructions in Australia.The wholesale payment system:

• A)is, in total, of less daily value than retail payment system
• B)settles on a real-time gross settlement basis
• C)settles more transactions than the retail payment system
• D)is used for all large transactions.
• E)All of these.

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Definitions:

Future Value

The value of an investment at a specified date in the future, considering factors like interest rates and time.

Present Value

The contemporary valuation of a future quantity of money or cash flow series, assuming a specific interest rate.

Annuity Due

A type of annuity payment where the payment is due at the beginning of each period, rather than at the end.

Expected Cash Flows

The projected amounts of money to be received or paid out by a business within a specified period.