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CTP · Question #748

(Topic 8) XYZ Company has decided to transition the responsibility for its hedging activities from the local offices to the head office; however, the local offices will continue to choose their own…

The correct answer is A. centralized. See the full explanation below for the reasoning.

Question

  • (Topic 8)

XYZ Company has decided to transition the responsibility for its hedging activities from the local offices to the head office; however, the local offices will continue to choose their own depository banks. Under the new structure, XYZ’s treasury operations will be:

Options

  • Acentralized.
  • Bcombined.
  • Cdecentralized.
  • Dshared service center.

How the community answered

(50 responses)
  • A
    74% (37)
  • B
    6% (3)
  • C
    16% (8)
  • D
    4% (2)

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