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CTP · Question #736

(Topic 8) The primary bank for a major multinational company would use an overlay structure for euro zone cash concentration under which of the following circumstances?

The correct answer is A. The primary bank cannot provide full domestic banking services and thus must sweep. See the full explanation below for the reasoning.

Question

  • (Topic 8)

The primary bank for a major multinational company would use an overlay structure for euro zone cash concentration under which of the following circumstances?

Options

  • AThe primary bank cannot provide full domestic banking services and thus must sweep
  • BThe local banks can provide full pooling arrangements and not sweep surplus funds.
  • CIt is cost effective for companies to provide their own in-house banking services.
  • DThere is excessive competition among local banks for cash management business.

How the community answered

(50 responses)
  • A
    72% (36)
  • B
    8% (4)
  • C
    16% (8)
  • D
    4% (2)

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