Which of the Following Statements About Multilateral Netting System Are

question 18

Multiple Choice

Which of the following statements about multilateral netting system are correct?
(i) - each affiliate nets all its inter-affiliate receipts against all its disbursements.
(ii) - it transfers or receives a balance,depending on whether it is a net payer or receiver.
(iii) - the net funds to be received by the affiliates will equal the net disbursements to be made by the affiliates.
(iv) - only two foreign exchange transactions are necessary since the affiliates' net receipts will always be equal to zero.
(v) - only two foreign exchange transactions are necessary since the affiliates' net disbursements will always be equal to zero.

• A) Only (i) and (ii)
• B) Only (i), (ii), and (iii)
• C) Only (i), (ii), (iii), and (iv)
• D) Only (i), (ii), (iii), and (v)