The Risk That a Party Will Not Pay While the Counterparty

question 46

Multiple Choice

The risk that a party will not pay while the counterparty is sending payment is called

• A)wire transfer risk
• B)payment risk
• C)settlement risk
• D)cross-border risk
• E)none of the above

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Definitions:

Loan

A financial agreement where a borrower receives funds with the obligation to repay them with interest over a defined period.

Note

A written promise or acknowledgement of a debt, where the writer agrees to pay the specified sum of money to the bearer or to a specific individual.

Signature

A person's name or mark written in a distinctive way as a form of identification in authorizing a document.

Code

A system of laws or regulations, typically organized in a comprehensive and systematic manner.