Ripple and XRP in Real-Time Cross-Border Trade Finance BBLC Practice Questions (Page 6)

Questions 26–30

1. 26application · medium

   A bank is considering using ODL for a new cross-border corridor. The bank's legal team notes that the destination country has recently issued guidance that may classify XRP as a security. What should the bank do?

   • AAsk Ripple to indemnify the bank against regulatory penalties.
   • BUse XRP only for the source side of the transaction to avoid the destination's regulation.
   • CProceed with ODL because the guidance is not legally binding.
   • DPause the ODL rollout in that corridor until the regulatory classification is clarified.
   Reveal Solution Discussion Select an answer first
2. 27application · medium

   A payment service provider wants to use XRP as a bridge currency but is worried about the liquidity of XRP in a specific corridor. What should the provider evaluate before committing to this approach?

   • AThe price of XRP in US dollars only.
   • BThe mining difficulty of the XRP network.
   • CThe number of XRP tokens in circulation globally.
   • DThe depth of the XRP order books for both the source and destination currency pairs.
   Reveal Solution Discussion Select an answer first
4. 28expert · hard

   A bank wants to use XRP as a bridge currency for a high-volume corridor. The bank's risk team is concerned about the operational risk of holding XRP during settlement. The bank also wants to minimize the cost of maintaining multiple nostro accounts. Which strategy best balances these concerns?

   • AUse a mix of XRP and traditional nostro accounts, but only for large transactions.
   • BHold XRP in a cold wallet for each corridor to ensure immediate liquidity.
   • CUse ODL, which holds XRP only for seconds, while reducing the need for pre-funded nostro accounts.
   • DUse XRP only for low-value transactions and keep nostro accounts for high-value ones.
   Reveal Solution Discussion Select an answer first
5. 29foundation · easy

   How does Ripple and XRP compare to SWIFT in terms of transparency?

   • ASWIFT offers a public ledger, while Ripple is private
   • BNeither provides any transaction visibility
   • CRipple provides a public ledger with transaction visibility, while SWIFT is a messaging system with limited public visibility
   • DBoth provide identical transparency levels
   Reveal Solution Discussion Select an answer first
6. 30expert · hard

   A bank is evaluating whether to use SWIFT gpi or RippleNet with XRP for a new cross-border payment service. The bank's clients require transparency on fees and settlement time. The bank also wants to minimize the operational cost of maintaining multiple nostro accounts. Which approach best satisfies these requirements?

   • AUse SWIFT gpi for tracking and RippleNet for settlement, but only for high-value payments.
   • BUse RippleNet with ODL to provide real-time settlement and reduce nostro account maintenance.
   • CUse XRP as a messaging standard to improve transparency without changing settlement.
   • DUse SWIFT gpi because it provides end-to-end tracking and does not require any changes to correspondent relationships.
   Reveal Solution Discussion Select an answer first