Which One of the Following Is a False Statement When

question 60

Multiple Choice

Which one of the following is a false statement when engaged in bilateral netting?

• A)Total interaffiliate receipts will always equal total interaffiliate disbursements.
• B)We can reduce the number of foreign exchange transactions among a MNC with N affiliates to or less.
• C)Each affiliate nets all its interaffiliate receipts against all its disbursements.It then transfers or receives the balance, respectively, if it is a net payer or receiver.
• D)All of the above

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Definitions:

Aggregate Expenditure

The total spending in an economy, including consumption, investment, government spending, and net exports, at a given time.

Government Purchases

Expenditures by the government sector on goods and services intended to satisfy public consumption and investment demands.

Inventory

The total amount of goods and materials held in stock by a business, warehouse, or store.

Gross Domestic Product

Gross Domestic Product (GDP) is the total monetary or market value of all the finished goods and services produced within a country's borders in a specific time period.