1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
asambeis [7]
3 years ago
6

The risk that a central bank will not make the necessary transfer of foreign currency to complete a currency settlement is known

as ________ risk. Group of answer choices settlement exchange rate Interest-rate Herstatt
Business
1 answer:
motikmotik3 years ago
4 0

Answer:

Herstatt.

Explanation:

The risk that a central bank will not make the necessary transfer of foreign currency to complete a currency settlement is known as herstatt risk.

Herstatt risk is also known as cross-settlement risk or settlement risk. It was named after Bankaus Herstatt (a German bank) that failed in June 1974 when it was supposed to settle a contract for a payment received from the other party and consequently, amounting to a loss of about $602,000,000.

Hence, is mainly a loss in foreign exchange transactions where a party defaults after receiving money from another.

You might be interested in
The following information relates to the manufacturing operations of the IMH Publishing Corporation for the year:Beginning Endin
LenKa [72]

Answer:

Raw materials purchased = $111,000

Explanation:

given data

                                           Beginning                       Ending

Raw materials inventory     $47,000                        $50,000

Finished goods                     58,000                          50,000

raw materials use manufacturing = $108,000

solution

we get here Raw materials purchased that is express as

Raw materials purchased + beginning raw material = ending Raw materials + Raw materials used    ...................1

put here value and we get

Raw materials purchased = $50,000 + $108,000 - $47,000

Raw materials purchased = $111,000

6 0
3 years ago
Albert decided that it was time to invest his money. he was quite excited and told his friends about his new financial venture.
NemiM [27]
Financial venture. even his wife was supportive. albert liked a number of riskier company
8 0
3 years ago
A provision stating that the insurer cannot dispute the validity of a policy after a specific period is called a(n) ______.
Mazyrski [523]

Incontestability clause - This tells us the insurance company may not contest the validity of the policy during the insured's lifetime for any reason, including fraud, if the policy has been in effect for a predetermined duration

What is incontestability clause?

An incontestability clause in a life insurance policy safeguards the policyholder and forbids the insurer from changing any aspect of the insurance coverage as a result of a misinterpretation or false statements made by the insured (the policyholder) after a certain amount of time. A life insurance policy's provider cannot revoke any statement after a specified period of time thanks to an incontestability provision. This provision is frequently regarded as offering policyholders the most robust defense.

Learn more about insurance here:

brainly.com/question/16267577

#SPJ4

8 0
1 year ago
The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put
lorasvet [3.4K]

This question is incomplete, the complete question is;

We will derive a two-state put option value in this problem.

Data: S₀ = 106; X = 112; 1 + r = 1.12. The two possibilities for ST are 149 and 75.

The range of S is 74 while that of P is 37 across the two states. What is the hedge ratio of the put

Answer: the hedge ratio of the put H = - 1/2 ≈ - 0.5

Explanation:

Given that;

S₀ = 106, X = 112, 1 + r = 1.12

Us₀ = 149 ⇒ Pu = 0

ds₀ = 75 ⇒ Pd = 37

To find the Hedge ratio using the expression

H = Pu - Pd /Us₀ - ds₀

so we substitute

H = 0 - 37 / 149 - 75

H = - 37/ 74

H = - 1/2 ≈ - 0.5

3 0
3 years ago
Suppose that Steve, one of the partners in a home improvement company, intends to dissolve the partnership. Before he can give n
bija089 [108]

Answer:

still be liable for Hala's contract.

Explanation:

Any contract entered into by any of the partners, before the dissolution of a partnership business is deemed legal hence binding on the partners. This means that the partners will still be liable for the new contract in line with their partnership status.

Although, before a partnership business can be dissolved, at least one of partners must give a notice of intent. If in the process of giving the notice, another member enters in a new contract, such will be valid and partners will still be held liable because the business has still not been dissolved in the eye of the law.

Any contract entered into by any partner in a partnership business aftet dissution becomes illegal hence not binding on other members.

6 0
3 years ago
Other questions:
  • Brooks Foundry in Rochester comma New York​, uses a predetermined manufacturing overhead rate to allocate overhead to individual
    15·1 answer
  • Marcie goes to the salon and has a pedicure and a manicure. What has Marcie purchased from the salon?
    13·1 answer
  • The simplest circular model of the United States economy depicts the economy as a cycle in which resources flow between which tw
    7·2 answers
  • Which of the following applies to the "value of money"?
    6·2 answers
  • A successful total quality management (TQM) program requires
    6·1 answer
  • Deflation is a period where supply for most products is less than demand.
    13·2 answers
  • When making a decision, only relevant items are included in the analysis of the alternatives when using ______.
    12·1 answer
  • In the case of an undisclosed principal, a third party
    9·1 answer
  • A resource management system in which decisions regarding resource access and use are vested in a community of identifiable memb
    9·1 answer
  • Which of the following is not a correct way of calculating a liquidity ratio?
    10·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!