Risk That a Central Bank Will Not Make the Necessary

question 2

Multiple Choice

Risk that a central bank will not make the necessary transfer of foreign currency to complete a currency settlement is known as ________ risk.

• A) exchange rate
• B) Herstatt
• C) Interest-rate
• D) settlement

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Definitions:

Concept Of Containment

A geopolitical strategy aimed at preventing the expansion of an enemy, notably used during the Cold War to limit the spread of communism.

Medicaid

A joint federal and state program that helps with medical costs for people with limited income and resources, offering benefits not typically covered by Medicare.

Joint State-Federal Program

Programs operated and funded by both state and federal governments to serve various public needs, like Medicaid.

Medical Care

A service provided to individuals to maintain or improve their health, often involving the diagnosis, treatment, and prevention of disease.