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CTP · Question #737
(Topic 8) A multinational company that uses "notional pooling" for its euro zone subsidiaries will
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
How the community answered
(69 responses)- A10% (7)
- B4% (3)
- C83% (57)
- D3% (2)
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