Consider a U.S.MNC with three subsidiaries and the following foreign exchange transactions shown at left.Use MULTILATERAL netting WITH A CENTRAL DEPOSITORY to reduce the number of foreign exchange transactions. 
Definitions:
Total Income
The combined earnings from wages, investments, and other sources before any deductions are made.
Wages & Salaries
Payments made to employees for their labor or services, typically on an hourly or annual basis.
Interest Rates
The cost of borrowing money or the compensation for the service and risk of lending money, typically expressed as a percentage of the principal.
Present Consumption
The use of goods and services for satisfaction or needs in the current period, as opposed to saving for future consumption.
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