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CTP · Question #737
CTP Question #737: Real Exam Question with Answer & Explanation
The correct answer is C. Subsidiary cash balances are netted each day to calculate interest, but funds are not. See the full explanation below for the reasoning.
Question
- (Topic 8) A multinational company that uses "notional pooling" for its euro zone subsidiaries will
Options
- AEnhanced accounting for transactions since funds are transferred into one account
- BMobilization of cash resources and thus economies of scale in making transfers
- CSubsidiary cash balances are netted each day to calculate interest, but funds are not
- DAn expanded number of euro zone banks in order to facilitate better service to transfer
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