When engaged in bilateral netting

Question

Quizplus · Accepted Answer

All three statements are true when engaged in bilateral netting:
A) Total interaffiliate receipts will always equal total interaffiliate disbursements as all transactions are netted off against each other. 
B) Bilateral netting reduces the number of foreign exchange transactions as each affiliate only has to transfer or receive a balance, resulting in fewer transactions. 
C) Each affiliate nets all its interaffiliate receipts against all its disbursements, and the balance is transferred or received if it is a net payer or receiver.

When Engaged in Bilateral Netting