The type of unit which guarantees that all the buying and selling will be made by traders of exchange is called ___________?
Correct answer: C. clearing house
- A. trading house
- B. guarantee house
- C. clearing house
- D. professional house
Explanation
A clearing house stands between exchange traders and guarantees that buying and selling obligations are properly settled. It reduces counterparty risk in exchange transactions.
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Business finance explains how organisations plan, obtain and use money while balancing risk, return and liquidity. Topics include financial statements, time value of money, budgeting, working capital, capital structure, sources of finance, investment appraisal and cost of capital. Capital budgeting evaluates long-term projects, whereas working capital manages day-to-day operations.
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