Which of the Following Statements About Multilateral Netting System Are

question 47

Multiple Choice

Which of the following statements about multilateral netting system are correct? (i) Each affiliate nets all its inter-affiliate receipts against all its disbursements.
(ii) Each affiliate transfers or receives a balance,depending on whether it is a net payer or receiver.
(iii) The net funds to be received by the affiliates will equal the net disbursements to be made by the affiliates.
(iv) Only two foreign exchange transactions are necessary since the affiliates' net receipts will always be equal to zero.
(v) Only two foreign exchange transactions are necessary since the affiliates' net disbursements will always be equal to zero.

• A)(i)and (ii)
• B)(i),(ii),and (iii)
• C)(i),(ii),(iii),and (iv)
• D)(i),(ii),(iii),and (v)

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Definitions:

Agent Duties

Obligations and responsibilities that an agent owes to their principal, including loyalty, confidentiality, and care.

Undisclosed Principal

In agency law, an individual whose existence and identity are not revealed by the agent during transactions conducted on their behalf.

Third Party

An entity not directly involved in a legal agreement or contract but might be affected by its outcome or has an interest in it.

Default

The failure to perform a legal duty or fulfill an obligation, such as not making scheduled loan payments.