Which One of the Following Is a False Statement When $$\frac { ( N - 1 ) } { 2 }$$

question 23

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 \[\frac { ( N - 1 ) } { 2 }\] 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:

Safety Stock

A quantity of inventory kept on hand to protect against fluctuations in demand or supply.

Lead Time

The amount of time that elapses between the initiation of a process and its completion.

Safety Stock

Inventory kept on hand to protect against fluctuations in demand or supply, ensuring that demand can be met without stockouts.

Lead Time

The amount of time between the initiation of a process and its completion.