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:

Craft Union

A labor union representing workers who are skilled in a particular craft, dedicated to protecting the workers' interests and negotiating for better terms through collective bargaining.

Labor Supply Curve

This represents the relationship between the amount of labor that workers are willing to offer and the wage rate, typically showing that higher wages incentivize more labor supply.

Inclusive Unionism

The policy, pursued by industrial unions, in which a union attempts to include every worker in a given industry so as to be able to restrict the entire industry’s labor supply and thereby raise wages. Compare with exclusive unionism.

Industrial Unions

Labor unions that organize workers across a wide range of occupations within a single industry.