AFP
CTP · Question #431
(Topic 5) An international company would establish a re-invoicing center for which of the following reasons?
The correct answer is B. To manage the foreign exchange exposure of its foreign subsidiaries. See the full explanation below for the reasoning.
Question
- (Topic 5)
An international company would establish a re-invoicing center for which of the following reasons?
Options
- ATo reduce its international balance reporting charges
- BTo manage the foreign exchange exposure of its foreign subsidiaries
- CTo take advantage of interest-bearing demand deposits
- DTo bring transaction exposures more closely in line with economic exposures
How the community answered
(28 responses)- A7% (2)
- B75% (21)
- C4% (1)
- D14% (4)
Community Discussion
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