Settlement risk is important because
A)of the interdependent nature of many international transactions.
B)of the impact on sovereign country risk.
C)problems may induce countries to limit the freedom of international capital flows.
D)the electronic funds transfer network itself may become insolvent.

Question

Quizplus · Accepted Answer

Settlement risk is important due to the interdependent nature of international transactions, where the failure of one party to deliver on time can affect multiple parties and transactions globally.

Settlement Risk Is Important Because