Vidyalelo
Management · Q540

International Finance and Treasury

Graduate and Post Graduate · Management · question 540

Q540

Type of unit which guarantees that all buying and selling will be made by traders of exchange is called

A.
trading house
B.
guarantee house
C.
clearing house
Answer
D.
professional house

Answer: Option C

Solution

Answer: Option C
Solution:
Type of unit which guarantees that all buying and selling will be made by traders of exchange is called clearing house. A clearing house acts as an intermediary between a buyer and seller and seeks to ensure that the process from trade inception to settlement is smooth. Its main role is to make certain that the buyer and seller honor their contract obligations.