An Organizational Structure Employed by an MNE to Reduce Its

question 40

Multiple Choice

An organizational structure employed by an MNE to reduce its use of bank lending for the support of operations is:

• A)a centralized depository.
• B)a reinvoicing center.
• C)a cost center.
• D)a syndicated bank.

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Definitions:

Financial Institutions

Organizations that provide financial services, such as banks, insurance companies, and investment funds, playing a critical role in the economy.

Legal Reserve Requirements

Guidelines enforced by central banks on the minimal reserves that banks should maintain in relation to their deposits.

Destroyed Money

The process of physically eliminating money from circulation, typically by central banks, to manage a currency's supply.

Check Clearing

The process by which banks settle transactions by transferring money from the check writer's account to the recipient's account.