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:

Layoff

A reduction in the workforce by a company, often to cut costs.

Commission

A fee paid to an employee or agent for facilitating a sale or transaction, usually calculated as a percentage of the sale price.

Transaction

An instance of buying or selling, or the exchange of goods, services, or funds.

Range

The difference between the highest and lowest values in a set of numbers.