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CTP · Question #749

(Topic 8) A multidivisional domestic company with centralized treasury decision-making can potentially utilize intra-company lending to:

The correct answer is D. lower the overall cost of short term funds. See the full explanation below for the reasoning.

Question

  • (Topic 8)

A multidivisional domestic company with centralized treasury decision-making can potentially utilize intra-company lending to:

Options

  • Areduce the overall liquidity of the company.
  • Bestablish individual subsidiary borrowing facilities.
  • Csource debt in different currencies.
  • Dlower the overall cost of short term funds.

How the community answered

(37 responses)
  • A
    3% (1)
  • B
    14% (5)
  • C
    5% (2)
  • D
    78% (29)

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