Which of the following factors would NOT add value to centralized cash management?
A)tax differentials across countries
B)violations of interest rate parity
C)differences between borrowing and lending rates
D)more freedom to local subsidiary project managers to handle local funds

Question

Quizplus · Accepted Answer

Giving more freedom to local subsidiary project managers to handle local funds would actually detract from centralized cash management, as it would create fragmentation and make it more difficult to manage cash effectively. A, B, and C all potentially create opportunities for centralized cash management to add value, as they involve cross-border differences in taxes or interest rates that could be exploited through cash management strategies.

Which of the Following Factors Would NOT Add Value to Centralized