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Which of the following is NOT an advantage of the clearinghouse system relative to a bilateral system of bank payments?
1 point
Payments are guaranteed by all clearinghouse members
Clearinghouses do not permit negative balances intraday
During financial crises, clearinghouses are able to create additional reserves
In a bilateral system, failure of one bank to settle with its correspondents can have a ripple effect by making it impossible for the other bank to settle also
Answers: 1
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Which of the following is NOT an advantage of the clearinghouse system relative to a bilateral syste...
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