Benefits of a Multilateral Netting System Include

question 100

Multiple Choice

Benefits of a multilateral netting system include:

• A)The decrease in the expense associated with funds transfer, which in some cases can be over $1,000 for a large international transfer of foreign exchange.
• B)The reduction in the number of foreign exchange transactions and the associated cost of making fewer but larger transactions.
• C)The reduction in intra-company float, which is frequently as high as five days even for wire transfers.
• D)The benefits that accrue from the establishment of a formal information system, which serves as the foundation for centrally managing transaction exposure and the investment of excess funds.
• E)All of the above

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Definitions:

Output

The total amount of goods and services produced by an economy over a certain period of time.

Money Supply

The money supply is the total amount of monetary assets available in an economy at a specific time, including cash, bank deposits, and other liquid assets.

Federal Budget Surpluses

Occurs when a government's revenue exceeds its expenditures during a given fiscal period.

Stabilize Economy

Efforts or policies aimed at maintaining economic balance by preventing extreme fluctuations in overall economic activity.