International cash management systems are more complex than domestic cash management systems because
A) many developing countries still use a cash payments system.
B) some countries rely on electronic funds transfer more than the U.S.
C) liquidity management, involving short-term cash balances and deficits, has to be managed across international boundaries and time zones and is subject to the risks of currency fluctuations.
D) None of the options are true.

Question

Quizplus · Accepted Answer

International cash management systems are more complex than domestic cash management systems because liquidity management involves managing short-term cash balances and deficits across international borders and time zones, subjecting it to the risks of currency fluctuations. While some developing countries still rely on a cash payments system, and some countries may rely on electronic funds transfers more than the U.S., these are not the primary reasons why international cash management systems are more complex.

International Cash Management Systems Are More Complex Than Domestic Cash