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AFP Certified Treasury Professional CTP Question # 463 Topic 24 Discussion

AFP Certified Treasury Professional CTP Question # 463 Topic 24 Discussion

CTP Exam Topic 24 Question 463 Discussion:
Question #: 463
Topic #: 24

XYZ Bank would like to conduct some foreign exchange transactions with JKL Bank. JKL isn’t the most liquid and could have some credit risk. XYZ Bank should suggest which of the following in order to eliminate risk?


A.

Pre-authorized draft


B.

Straight-through processing


C.

Forward rate contract


D.

Continuous Linked Settlement


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