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:

FOB Destination

A shipping term indicating that goods are delivered at the seller’s expense to a specific location, with ownership transferring to the buyer upon delivery.

FOB Shipping Point

A term indicating that the buyer assumes responsibility for shipping costs and liability once the goods leave the seller's premises.

Legal Title

Legal ownership of property or assets, which includes the right to use, sell or transfer them.

FOB Shipping Point

A shipping term indicating that the buyer assumes transportation costs and risk of loss once the goods leave the seller's premises.