16-81 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.
E)the Fed's guarantee may prove to be even more costly to the Federal government than the thrift debacle.

Question

Quizplus · Accepted Answer

Settlement risk is important due to the interdependent nature of many international transactions, where the failure of one party to settle can have cascading effects on other transactions and parties involved.

16-81 Settlement Risk Is Important Because