[Economic Term] Settlement

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Today's economic term is settlement.

Settlement is the process by which an economic entity, such as an individual or a company, completes a fund transaction or financial asset transaction and then transfers the final amount or securities through the liquidation process to close legal claims and liabilities.

Fund settlement refers to the movement of funds from the paying bank to the receiving bank by transferring funds between deposit accounts opened at the paying bank through the fund transfer system, and involves the exchange of financial assets and funds or different currencies, such as securities settlement or foreign exchange settlement. In exchange-of-value settlements that occur together, funds and financial assets are transferred between two payment systems or funds are transferred by currency.

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