A Centralized Cash Pool Assists in Reducing the Problem of Mislocated

question 25

True/False

A centralized cash pool assists in reducing the problem of mislocated funds and in funds mobilization.

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Definitions:

Utility Function

A mathematical representation that describes how consumers rank different bundles of goods according to the levels of satisfaction or utility those bundles provide.

Edgeworth Box

A diagram used in economics to show the distribution of resources and to find the optimal allocation for two individuals.

Contract Curve

In economics, it refers to the locus of optimal points of allocation of resources between two parties under the constraints of their respective utility functions.

Pareto Optimal

A state of allocation of resources in which it is impossible to make any one individual better off without making at least one individual worse off.