Ripple and XRP in Real-Time Cross-Border Trade Finance BBLC Practice Questions (Page 7)

Questions 31–35

1. 31application · medium

   A corporate treasurer compares SWIFT gpi and RippleNet for a high-volume, low-value cross-border payment stream. The treasurer values real-time tracking and final settlement. Which statement accurately contrasts the two?

   • ASWIFT gpi provides tracking but may still involve multiple correspondent banks, while RippleNet can settle directly between connected institutions.
   • BSWIFT gpi settles in real time using XRP, while RippleNet does not provide tracking.
   • CBoth systems require pre-funded nostro accounts in every currency.
   • DRippleNet is slower than SWIFT gpi because it uses a decentralized ledger.
   Reveal Solution Discussion Select an answer first
2. 32application · medium

   A financial institution wants to adopt ODL for cross-border payments but must comply with anti-money laundering (AML) regulations. Which practice should the institution implement to ensure compliance?

   • APerform customer due diligence (CDD) and transaction monitoring on all ODL transactions.
   • BUse ODL only for transactions below a threshold that exempts AML checks.
   • CRely on Ripple's compliance as a substitute for the institution's own AML obligations.
   • DAvoid recording transaction details to protect customer privacy.
   Reveal Solution Discussion Select an answer first
4. 33application · medium

   An invoice financing platform wants to offer faster funding to small suppliers who currently wait 30–60 days for payment from large buyers. The platform wants to use Ripple's technology to reduce the settlement time of the funding disbursement. Which use case best fits this scenario?

   • AUsing XRP to replace the invoice itself as a digital asset.
   • BUsing RippleNet to settle the invoice financing disbursement in real time once the funding is approved.
   • CUsing RippleNet to automate the credit decision for the invoice financing.
   • DUsing XRP to pay the supplier directly instead of the local currency.
   Reveal Solution Discussion Select an answer first
5. 34application · medium

   A bank wants to offer cross-border payments between two currencies that have low trading volume (e.g., Thai Baht to Polish Zloty). The bank does not have a direct FX market for this pair. The bank is considering using XRP as a bridge currency. What is the primary benefit of XRP in this low-liquidity corridor?

   • AXRP provides liquidity for the corridor by allowing the bank to convert THB to XRP and then XRP to PLN, avoiding the need for a direct THB/PLN market.
   • BXRP eliminates the need for FX conversion entirely because both banks can settle in XRP, avoiding the THB/PLN spread.
   • CXRP is accepted by all banks in Thailand and Poland as a settlement currency, so no conversion is needed.
   • DXRP is pegged to the US dollar, so the bank can use it as a stable proxy for both THB and PLN.
   Reveal Solution Discussion Select an answer first
6. 35foundation · easy

   Compared to traditional correspondent banking, what is a primary advantage of Ripple and XRP?

   • ARequires pre-funded accounts in every currency
   • BHigher transaction fees due to multiple intermediaries
   • CProvides less transparency due to private ledgers
   • DFaster settlement times, often in seconds
   Reveal Solution Discussion Select an answer first