Which of the following statements about multilateral netting system are correct?
(i) - each affiliate nets all its interaffiliate receipts against all its disbursements
(ii) - it 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)
Correct Answer:
Verified
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