Question

What is the purpose of the two-day time lag in a Spot Transaction settlement date?

a.

To facilitate currency conversion

b.

To allow verification and confirmation of the transaction

c.

To accommodate holidays in the location countries

d.

To ensure immediate exchange without delays

Posted under IC 89 Management Accounting

Answer: (b).To allow verification and confirmation of the transaction Explanation:The two-day time lag is required for verifying and confirming the transaction through telecommunication networks like SWIFT.

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Q. What is the purpose of the two-day time lag in a Spot Transaction settlement date?
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