The Main Advantage of Using a Netting System to Settle

question 6

Multiple Choice

The main advantage of using a netting system to settle foreign currency payments is:

• A) drastically reduces the number of payments
• B) increases the number of payments
• C) reduces the number of foreign currencies
• D) none of the above

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Definitions:

Hourly Wage

The rate an employee is paid for each hour of work.

Labor-Supply Curve

A graphical representation showing the relationship between the amount of labor workers are willing to provide at different wage rates.

Opportunity Cost

The cost of forgoing the next best alternative when making a decision or choosing to consume or produce one good or service over another.

Marginal Product

Marginal Product is the additional output resulting from a one-unit increase in the quantity of a particular input, holding all other inputs constant.