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.

---

Definitions:

Raw Materials Purchases

The total cost of raw materials bought by a company for production purposes during a specific time frame.

Cash Balance

Represents the amount of cash a company has on hand or in its bank accounts at any given time.

Cash Receipts

The total amount of money received by a business or individual within a given period through transactions or other forms of payment.

Cash Disbursements

Payments made in cash or cash equivalents, covering various expenses such as salaries, supplies, and other operational costs.