A centralized cash management system with a cash pool can reduce the investment the MNC has in precautionary cash balances,saving the firm money.
Multiple Choice Questions
Correct Answer:
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Q3: Precautionary cash balances
A)are necessary in case the
Q6: A netting center necessarily implies that the
Q7: Precautionary cash balances
A)represent an increasingly-important source of
Q9: A central cash manager has a global
Q11: Consider a U.S.MNC with three subsidiaries and
Q13: Consider a U.S.MNC with three subsidiaries and
Q14: Efficient cash management techniques can
A)reduce the investment
Q17: Find the net exposure of the U.S.MNC
Q18: Consider a U.S.MNC with three subsidiaries and
Q18: A centralized cash pool assists in reducing
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